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NT Dollar Rises Sharply, Chunghwa Telecom Chairman Stresses Limited Impact from Currency Losses

NT Dollar Rises Sharply, Chunghwa Telecom Chairman Stresses Limited Impact from Currency Losses

The recent sharp rise in the NT dollar has raised concerns in the market about potential foreign exchange losses for export industries. However, Chunghwa Telecom Chairman James J. Chang stated that the appreciation of the NT dollar does not affect Chunghwa Telecom (2412). The company has long-standing hedging measures in place, and the amount spent on foreign equipment is relatively small. Additionally, the revenues and expenditures of its U.S. subsidiary are denominated in USD, allowing for offsets between currency gains and losses.

After attending the seminar titled 'Embracing High-Speed Internet and Moving Towards a New Era of AI Smart Technology,' Chang emphasized that the recent surge in the NT dollar against the U.S. dollar does not impact Chunghwa Telecom. He further explained that when purchasing equipment or investing in dollars, the company employs hedging strategies, and the same applies to its international subsidiaries.

Regarding whether expenses for submarine cables and satellite investments will be affected, Chang clarified that although these costs are dollar-denominated, they are not paid in a lump sum, and they represent a small proportion of the company's overall revenues and expenditures, thus remaining unaffected.