The Taiwan dollar has lost more than 5% of its value against the surging greenback so far this year. — Reuters
TAIPEI: Taiwan’s central bank will intervene in the foreign-exchange (forex) market if there are “extreme” fluctuations to maintain financial stability, its governor Yang Chin-long says.
The Taiwan dollar has lost more than 5% of its value against the surging greenback so far this year.
It is at a more than seven-year low, as the export-dependent economy faces headwinds from slowing global demand for technology, Taiwan being a major producer of semiconductors.
Taking lawmakers’ questions in parliament, Yang said the central bank will intervene in the forex market as needed if there are “extreme” fluctuations, as they seek to slow the Taiwan dollar’s depreciation.
“If we don’t do this, it will threaten our financial stability,” he added.
Yang said Treasury “didn’t really mind” about Taiwan intervening to arrest the Taiwan dollar’s depreciation.
The central bank this week said it sold a net US$880mil to intervene in the forex market in the first half of this year, stepping in to maintain smooth market operations as the island contends with soft economic growth. — Reuters
