FSC, central bank agree on OBU ruleCURRENCY BENEFITS: Commission chairman Wellington Koo said that as Taiwanese firms’ registrations might not be approved abroad, they could open accounts hereBy Kao Shih-ching / Staff reporterThe Financial Supervisory Commission (FSC) and the central bank reached an agreement allowing local companies to open offshore banking unit (OBU) accounts at domestic banks to borrow foreign currency funds, FSC Chairman Wellington Koo (顧立雄) said yesterday. Financial Supervisory Commission Chairman Wellington Koo speaks to reporters after attending a meeting at the Legislative Yuan in Taipei yesterday. “Given that Taiwanese companies’ registrations might not be approved abroad, why do we not let them return and open accounts under our supervision?” he said. “Local companies wanted to open OBU accounts to borrow US dollars, as they face many restrictions when applying for US dollar-denominated loans domestically,” the manager said. It would be much more convenient if local companies could directly borrow US dollars through OBU accounts, he said, adding that there would be no foreign exchange risks if companies receive US dollars from foreign clients.

Source: Taipei Times May 18, 2020 15:56 UTC