BEIJING -- The Chinese mainland and Taiwan Friday signed a memorandum on currency clearing, paving the way for a cross-Strait currency clearing mechanism, said a mainland spokesman in Beijing.

This is another important step for cross-Strait financial cooperation, said Yang Yi, spokesman with the State Council Taiwan Affairs Office in a statement to Xinhua.

A cross-Strait currency clearing mechanism will lower the cost of currency exchange and the risk of exchange rate fluctuation for business and people on both sides, Yang said.

It will facilitate cross-Strait investment and trade and expand economic cooperation, he said.

The move is a response to the calls and expectations of people on both sides and is mutually beneficial and of great significance for economic development on both sides, he said.

"We are hoping currency regulators on both sides will speed up follow-up preparation work and start cross-Strait currency clearing operations as early as possible," he said.