The New Taiwan Dollar has recently soared, reaching 29.6 NT$, potentially impacting Taiwan's export-oriented industries. Chiou Da-Sheng, Executive Director of the Asia-Pacific Chamber of Commerce, emphasized that this surge will affect export margins, especially during sensitive negotiations with the U.S. regarding tariffs, making it impossible for the central bank to continue buying dollars to stem the rise.

As of 9:58 AM, the exchange rate hit 29.6 NT$, marking the highest point since early 2023. This surge is not only due to the strength of the NT$, but also a depreciation of the USD, leading to an overall rise in Asian currencies. Chiou noted that this diminishes price competitiveness for Taiwanese products, particularly in tech and traditional industries.

He also expressed concern regarding the financial sector, which holds USD assets, as life insurance companies might sell off NT$ in response to currency fluctuations. Although Taiwan's government denies engaging in currency manipulation, maintaining a competitive exchange rate is essential with respect to FTA and BTA negotiations with the US.

Chiou emphasized that during the ongoing negotiations, the central bank is unlikely to take steps to intervene in the exchange rate to avoid being accused of currency manipulation. He added that Taiwan has previously been listed as a currency-manipulating nation and must tread carefully to avoid crossing critical thresholds.