March 25, 2005
Taiwan's central banking authority, the Central Bank of China, in early March promulgated revisions to foreign currency exchange regulations so as to allow all financial institutions to offer foreign currency services and money changing services to be provided at a broader range of premises. These revisions will provide greater convenience both to tourists and foreign businesspeople that wish to change money once in Taiwan and to Taiwanese that are preparing to head overseas. With more businesses providing foreign currency and money changing services, the increased competition is expected to lead to better rates and service.
These latest CBC revisions permit all of the nation's financial institutions, including banks, credit cooperatives, farmers' association credit cooperatives and the state-run postal service Chunghwa Post Co., to provide foreign currency services, including the sale of foreign currency travelers' checks and money changing services.
Chunghwa Post Co., which operates over 1,300 post offices and service centers, has begun selling American Express travelers' checks and is looking into the possibility of providing foreign cash exchange services.
As for money changing services, in the old days, only authorized foreign exchange banks and select tourist hotels, travel agencies and major department stores, where rates were significantly higher than at forex banks, were permitted by law to offer such services. This was inconvenient and led some people to resort to illegal alternatives.
With later revisions, the CBC began to allow hotels and stores in remote areas to change foreign currency and also permit authorized money changers to provide services at national scenic area administration centers. However, there were still many limitations to this system.
Now, it's hard to imagine things being any more convenient. The latest revisions target places frequented by tourists by extending the types of premises that are permitted to offer money changing services to include national scenic area administration centers, tourist centers, train stations, temples, museums, and, even more importantly, Taiwan's omnipresent convenience stores.
The new regulations do not however allow jewelry stores to apply for authorization to change foreign currency.
In the past, many people in Taiwan turned to jewelry shops and other unauthorized money changers because these places offered better exchange rates and faster service than designated banks. However, these illicit changers were often involved in money laundering for organized crime syndicates and there was always concern of being cheated or receiving counterfeit bills.
To help consumers avoid unauthorized money changers, the new CBC regulations require all authorized money changing premises, with the exception of banks, to display standardized government-designed foreign currency exchange signs.
(United Daily News)
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