Finance Center / Comprehensive Report. Following last Friday (2nd), when the New Taiwan Dollar (NTD) appreciated significantly by 1.2 yuan against the US dollar, this trend continued today (5th), with the Taipei foreign exchange market opening with the NTD at 30.91 yuan against the dollar, an increase of 1.5 cents. The NTD continued to rise, gaining over 1.39 yuan, reaching 29.67 per dollar. The persistent appreciation of the NTD has put exporters under great pressure, with the Machinery Association stating that if the NTD rises to 28 yuan against the dollar, half of the industries could go bankrupt, prompting many exporters to closely monitor foreign exchange market developments.

Moreover, today's surge in currency exchange demand inadvertently caused system outages, reflecting the market's heightened concern over exchange rate fluctuations. Market experts have pointed out that this wave of appreciation has occurred too rapidly, causing exporters to suffer significantly. The life insurance sector is particularly hard hit, and it is feared that they may not be able to issue dividends next year, leaving shareholders with only eco-friendly cups. Last Friday (2nd), the NTD appreciated by 3%, and by Monday, it gained another 5%, leading to an estimated 8% loss in gross margin for exporters over a two-day period.

To hedge against risks, many rushed to exchange currencies when they saw the NTD hitting the 29 range, resulting in significant congestion within banking systems. Cathay United Bank stated that recent volatile movements in foreign exchange rates have led to a substantial increase in customer inquiries about exchange rates beyond normal levels, and the bank has initiated a queuing process to maintain system stability. Taishin Bank also reported that the sudden surge in currency exchange demand has caused usage to exceed the app’s load capacity, and they are currently addressing the issue.