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Depreciation of Taiwan dollar needs overall consideration: premier

Depreciation of Taiwan dollar needs overall consideration: premier

Taipei, May 11 (CNA) Premier Jiang Yi-huah said Saturday that whether or not Taiwan's government should allow the Taiwan dollar to depreciate to boost exports, as some industries are suggesting, is a matter that involves taking into consideration what's good for the overall economy.
The premier on Saturday called on CHMER Company, a leading Taiwanese manufacturer of machine tools in Taichung, central Taiwan, and its Chairman Wang Wu-hsiung, who suggested that Taiwan's Central Bank should consider a depreciation of the Taiwan dollar to help exports. Wang told the premier that due to the depreciation of the Japanese yen and Korean won, a lot of foreign buyers have diverted to Japanese or South Korean products, and that "Taiwan's edge in price is eroding." Wang also expressed the hope that the government will speed up merchandise trade talks under the cross-strait Economic Cooperation Framework Agreement signed with China, as well as negotiations on free trade talks with other nations. On Friday, Jiang also visited HIWIN Technologies at the Taichung City Precision Machinery Innovation Technology Park and met with representatives of the industry in the city. During the meeting, industry officials asked for a depreciation of the Taiwan dollar so that their products can be competitive. However, the premier said that the central bank has to consider the overall interests of the nation, including market mechanisms and foreign exchange reserves, but he said he will still convey the concerns and suggestions of the industry to the central bank. The premier has been visiting factories over the past two days in order to understand more about the situation of the industries. (By Hau Hsueh-chin and Lilian Wu)


Updated : 2021-09-21 11:34 GMT+08:00