U.S. Warns: Taiwanese Central Bank Should Limit Forex Interventions
The U.S. Treasury Department reported on the 6th (Taipei time) that Taiwan remains on its watch list in the semi-annual currency report. The U.S. advises that the Taiwanese central bank's forex interventions should be limited so that exchange rate movements reflect economic fundamentals.
The report did not label any trading partner as a currency manipulator but noted that Taiwan, along with China, Germany, Singapore, Vietnam, Japan, and South Korea, remained on the watch list. Switzerland and Ireland were newly added. The central bank reported a trade surplus of $74 billion with the U.S. for the year 113, with a current account surplus to GDP ratio of 14.2%.
Furthermore, the central bank emphasized that since April 2, the U.S. Treasury has not requested that the New Taiwan Dollar appreciate. They will continue to maintain smooth communications with the U.S. treasury regarding overall economic and exchange rate policies.
