Government officials publicly addressed speculations regarding the recent sharp fluctuations affecting the New Taiwan Dollar (NTD) exchange rates, which coincided with U.S.-Taiwan tariff negotiations.
Premier Cho Jung-tai (卓榮泰) emphasized on Tuesday that Taiwan is not a currency-manipulating country. He adds that any illegal activity found influencing the exchange rate will be strictly addressed.
The Taiwan dollar rose significantly against the U.S. dollar in recent days, appreciating nearly NT$2 . The exchange rate climbed from NT$32.017 on April 30 to a high of NT$29.5 on May 5, before retreating to above NT$30 on May 6 amid central bank intervention.
Taiwan’s Central Bank Governor Yang Chin-long's (楊金龍) held a press conference on Monday, explaining that market expectations had caused the Taiwan dollar to fluctuate excessively. Yang described the situation as “abnormal” and hopes that the irregularities will end here, signaling that the central bank would intensify efforts to stabilize the currency.
He says that media reports claiming that the Mar-a-Lago agreement caused the NTD appreciation were “absolutely untrue.” He adds that the Central Bank did not participate in the U.S.-Taiwan trade negotiations.
Premier Cho also responded to speculation that Taiwan might be using currency movements to gain leverage in ongoing U.S.-Taiwan tariff negotiations in an interview on Tuesday. He says that last week’s talks with the U.S. went smoothly. He emphasizes that the exchange rate issue was not included in the discussion and negotiation.
Cho says the central bank and financial institutions have been directed to strictly enforce checks against illegal behavior in the forex market. He says that he hopes market mechanisms will quickly stabilize exchange rates and urges the public to stay calm and confident in Taiwan’s economy.