After several days of strong appreciation of the New Taiwan Dollar (NTD) exchange rate, Taiwan's Premier Zhuo Rongtai emphasized that Taiwan is not a country that manipulates its exchange rate, nor will it allow 'vultures' to influence or manipulate Taiwan's exchange rate.
The NTD surged during the Taiwan-U.S. negotiations. The NTD closed at 31.06 against the dollar on the 2nd, with a single-day increase of up to 3%, the highest since 1988. Taiwan's Central Bank Governor Yang Jinlong noted the presence of 'vulture-like' behavior in currency speculation.
In an interview on the 6th, Zhuo Rongtai emphasized that Taiwan has always maintained its exchange rate, reiterating twice that the 'Republic of China Taiwan has never been a country that manipulates its exchange rate,' but also that it will not allow 'vulture' forces to influence, damage, or manipulate Taiwan’s exchange rate.
He pointed out that if any illegal activity is detected, it will be strictly investigated and dealt with by the central bank and financial units, and he hopes that under the influence of market mechanisms, the exchange rate will stabilize soon.
Regarding the progress of the Taiwan-U.S. negotiations, Zhuo Rongtai stated that last week both sides had face-to-face discussions, the process was harmonious, and clarified that exchange rate issues were not involved in this round of negotiations.
As of Tuesday morning, the appreciation of the NTD against the dollar has narrowed, and the market is gradually digesting the impact of the exchange rate fluctuations.