Central Bank Considers 3 Factors, Mega Bank Reappointed as Other Foreign Currency Clearing Bank

The Central Bank today issued a press release stating that Mega Bank has been reappointed as the clearing bank for "other foreign currencies" on the foreign currency settlement platform, believing this will help reduce stability and security concerns arising from system reconstruction. The foreign currency settlement platform, planned and established by the Central Bank, began operations on March 1, 2013, successively providing settlement for US dollars, Renminbi, Japanese Yen, and Euros. Given that public deposits and domestic financial products also include other foreign currencies, to facilitate investors in handling payments through the platform, "other foreign currencies" (currently only Australian dollars) were added in 2016, with Mega Bank serving as the clearing bank. The Central Bank stated that Mega Bank's five-year exclusive operating period as the clearing bank for other foreign currencies will expire on October 27, 2026. To ensure the continuous operation of the foreign currency settlement platform's other foreign currency clearing business, a new selection process for the other foreign currency clearing bank was recently conducted. The Central Bank considered three major factors: first, Mega Bank is the current clearing bank for US dollars, Euros, and other foreign currencies, possessing rich experience in domestic foreign currency clearing operations, and its operations as the other foreign currency clearing bank have been smooth, demonstrating its capability to continue the business; second, it eliminates the operational costs for participating units to reopen accounts; and third, it helps reduce stability and security concerns arising from system reconstruction. After comprehensive evaluation, the Central Bank today announced that Mega Bank has been reappointed as the clearing bank for "other foreign currencies" on the foreign currency settlement platform.