The phenomenon of hoarding renminbi in Taiwan

TAIPEI, April 19 (Xinhua) The renminbi has been squeezed on the island as a result of a bullish renminbi valuation, according to Taiwanese media reports. Taiwan's local banks are in great demand for yuan after the Chinese New Year. The bank, which has the largest volume of renminbi trading, said many institutions expected the renminbi to appreciate, so a lot of people wanted to buy some renminbi to put in their hands, causing the renminbi to spot tight.　　At the same time, some county and city stores have also begun hoarding Chinese tourists to Taiwan to spend yuan in cash, resulting in a sharp reduction in the amount of renminbi cash flowing back into the market.　　Some private banks in the island raised yuan buying prices sharply in April, hoping to encourage people to sell their renminbi to banks, but the effect was not obvious.　　It is also reported that although the supply of renminbi is tight, but Taiwan's banks, mega-HSBC and other islands, the two major renminbi exchange banks, said it will maintain the island's people can exchange a 20,000 yuan limit. June 30, 2008, the island of Taiwan officially open RMB for the NT dollar, each person's exchange must not exceed RMB 20,000 yuan.