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Who Benefits from TWD Appreciation? Expert Analysis Reveals Winners are Not Who You Think

Who Benefits from TWD Appreciation? Expert Analysis Reveals Winners are Not Who You Think

The recent appreciation of the New Taiwan Dollar to historical highs has markedly impacted the financial and export sectors. Foreign investors have emerged as the biggest winners, enjoying significant gains from both currency exchange and stock prices. Financial expert Yuan Mu-Hua expressed a generally positive attitude towards this phenomenon, stating that an appreciation is preferable to a depreciation, as it enhances purchasing power in international markets, which is beneficial for Taiwan's overall economy.

However, Yuan pointed out that the appreciation poses challenges for individuals holding substantial dollar assets, predominantly the wealthy and a portion of the middle class in Taiwan. He emphasized that most Taiwanese still hold their assets in TWD, which mitigates the overall impact. As financial and insurance sectors face immense challenges, particularly with significant currency losses, the upcoming April net values to be released on May 10 are expected to reveal further difficulties.

Additionally, export-oriented industries are also feeling the effects of the TWD appreciation. Despite complaints from exporters, Yuan advised that they must strategize for the long term. Foreign investment strategies have profited from this situation, showcasing their advantage in managing multiple assets and currency operations.

In summary, Yuan believes this appreciation may signal the dawn of a new era, especially as the benefits of globalization diminish, with previously favored groups now potentially facing new challenges.