The exchange rate of the New Taiwan Dollar has skyrocketed, with the USD/TWD rate reaching the twenties. This unprecedented surge affects various industries. Financial program host Ruǎn Mùhuá points out that the most troublesome sectors are finance and listed electronics, yet he believes that a rapid appreciation is better than a steep depreciation.

Ruǎn Mùhuá states that this surge sets a historical record and shares seven key insights: first, appreciation is preferable to depreciation as it indicates stronger international purchasing power. If the currency were to drop by 10% within a few trading days, the market would panic. It’s worth mentioning that a stronger currency is unfavorable to those holding large amounts of USD assets, which mainly include the wealthy. While the middle class may hold a balanced portfolio of TWD and USD, most individuals possess more TWD assets.

He believes the financial sector, especially insurance, will experience the most significant difficulties. Taiwan's insurance industry holds approximately $700 billion in assets, with only a 60% hedging rate, indicating potential exchange losses ahead. The financial results from insurance companies will be revealed on May 10, serving as an early warning. The second sector affected is the listed electronics industry, which may struggle to determine pricing strategies as they seek hedging solutions.

Moreover, Ruǎn Mùhuá suggests that exporters might react negatively, but instead of complaining, they should prepare for the long-term. He notes that foreign investors may stand as potential winners in this scenario, profiting from the fluctuations in stock and exchange rates. He expresses curiosity over whether the central bank’s foreign exchange reserves, particularly US Treasury bonds, require revaluation.

Lastly, he emphasizes that Taiwan's wealthy are likely contemplating when to start exchanging significant amounts of USD, marking the beginning of an era where globalization beneficiaries are beginning to face their returns.