Recently, the New Taiwan Dollar (NTD) has experienced a dramatic appreciation against the US Dollar, alarming many importers and exporters who are now criticizing the central bank for excessive fluctuations in the exchange rate that disrupt business operations. Over the past few days, the NTD has shown significant volatility, with a sharp rise on the 2nd, and continuing its upward trend today (5th). During trading, the spot rate briefly reached 29.64 NTD per USD, exacerbating the impact on domestic currency exchanges and prices of essential goods like oil.

As the NTD fluctuates widely within a couple of days, many trade firms are expressing their frustrations about no longer being able to cope with such changes. Historically, the exchange rate has experienced stable minor adjustments, benefitting the semiconductor sector, but with current daily increases of 3%, or even cumulative increases of 10%, businesses are struggling to maintain their operations. Companies have complained that their profit margins already reduced by international market conditions and freight costs, are further eroded by a sudden 10% appreciation, making it hard for them to survive.

Furthermore, some industry players believe that, while this might be a short-term phenomenon, the unpredictability of the exchange rate can lead to a change in industry sentiment, causing delays in procurement. This situation is not favorable for Taiwan's export-driven industries. Importers are also revealing pressures as consumers expect lower prices for goods, which may lead to unnecessary market confusion; they express extreme dissatisfaction with the recent performance of the central bank.

Meanwhile, offshore wind power operators, who usually handle hundreds of billions in projects, indicate that the short-term impact of the exchange rate fluctuations is limited. They usually account for currency factors when signing contracts, thus mitigating actual adverse effects.

Businesses have noted that global trade is currently in turmoil, particularly with substantial fluctuations in the US Dollar. Most developers are European, who are primarily focused on changes in the Euro-to-Dollar exchange rate. Only certain projects perform transactions based on NTD to USD, and with the future of the dollar uncertain, it's currently difficult to assess the potential monetary impacts.