Absence of Currency Interference: Prime Minister's Statement

Absence of Currency Interference: Prime Minister's Statement

💭 Let's chat about Taiwan's currency situation! 💭

Premier Cho Jung-tai unequivocally asserted yesterday that the government isn't indulging in currency manipulation—benumbing rumors instigated by assumptions that the sudden appreciation of the New Taiwan dollar was due to pressure from the US.

During a plenary session at the Legislative Yuan, Cho stated emphatically that the local currency has historically maintained stability, insisting Taiwan never engages in currency manipulation, and affirming the central bank's unwavering commitment to adhering to legal guidelines while monitoring exchange rate fluctuations.

Under scrutiny, Cho addressed central bank Governor Yang Chin-long's comment regarding speculators attempting to disrupt the NT dollar. He emphasized that illegal market activities would neither be tolerated nor sweep Taiwan under the rug.

Equipped with a stern gaze, Cho proclaimed that he had directed the central bank and financial institutions to impose stringent checks on such illicit behavior.

Remarkable swings were witnessed in the NT dollar on Friday and Monday, appreciating by NT$1.872 from NT$32.017 against the US dollar on Wednesday to settle at NT$30.145 on Monday.

The NT dollar had maintained a steady presence between NT$32.5 to NT$33 from the beginning of the year till late last month, only to be followed by a dramatic surge.

The press has been rife with notions that Asian countries, including Taiwan, have been engaging in a clandestine dance, exchanging higher exchange rates for reduced tariffs to counter President Trump's tariff threats.

Taiwanese officials have worn thin trying to assure the masses that the sudden appreciation of the NT dollar was unrelated to external pressures, with the government conspicuously refraining from publicly rebuking Trump's coercive trade policies.

Cho expressed optimism that market dynamics would steer the currency exchange rates towards stabilization. And lo and behold, market forces indeed seemed to agree—with the US dollar trading at about NT$30.13 at noon yesterday, slipping below the NT$30 threshold briefly in the morning.

💡 Enrichment Data 💡Although the US did label Taiwan as a currency manipulator back in the 1980s, as of recent years, there's no concrete evidence suggesting that the US has accused Taiwan of participating in currency manipulation. The global trade tensions and US foreign policies have predominantly targeted China's perceived currency manipulation, accusations that Taiwan has chosen to avoid.

On the other hand, Taiwan has been actively defending its economic policies and responding to US economic actions, particularly emphasizing its standing in the critical semiconductor sector. Taiwan has sought to clarify its trade relations with the US, often stressing its value as a reliable technology partner.

So, while it's a circus of economics out there, it seems Taiwan's at the high wire, balancing its moves carefully without succumbing to the call of currency manipulation—or so it seems from the available information!

1. Cho affirmed that Taiwan's Central Bank is committed to legal guidelines and monitoring exchange rate fluctuations, arguing that the country never engages in currency manipulation.
2. There's no concrete evidence suggesting that the US has recently accused Taiwan of participating in currency manipulation, despite global trade tensions and US foreign policies targeting China's perceived currency manipulation.
3. Speculators attempting to disrupt the NT dollar's exchange rate have been addressed by Premier Cho, who emphasized that illegal market activities would not be tolerated.
4. The Taiwanese government has been attempting to assure the public that the sudden appreciation of the NT dollar was unrelated to external pressures, while actively defending its economic policies and responding to US economic actions, particularly in the semiconductor sector.

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