Turkish financial crisis to have limited impact on Taiwan: business tycoon

It is the trade conflict between the world’s two biggest economies that Taiwan should worry about

Chairman Rock Hsu (許勝雄) of the Third Wednesday Club (三三會) (Photo by CNA)

Chairman Rock Hsu (許勝雄) of the Third Wednesday Club (三三會) (Photo by CNA)

TAIPEI (Taiwan News) – The government and corporate world of Taiwan should worry more about the escalating trade war between the U.S. and China than about the currency crisis gripping Turkey currently due to overborrowing and quantitative easing measures for the past decade, said Chairman Rock Hsu (許勝雄) of the Third Wednesday Club (三三會), a well-established business organization in Taiwan.

When asked about whether the plunging lira could have any impact on Taiwan in a regular meeting of the Third Wednesday Club on August 15, Hsu remarked that Taiwan should be able to weather the storm as supported by its relatively robust economy, low external debt, high foreign exchange reserves, modest inflation, and checked financial leveraging, reported the Liberty Times.

Regarding risks posed to local businesses engaged with Turkey in trade activities, Hsu believes the companies could be shielded from the fallout with insurance mechanisms put in place. “It is the trade dispute playing out between China and the U.S. that Taiwanese government and businesses should be more concerned,” he added.

With the U.S. dollar continuing to gain strength that has benefited Taiwanese export industries, the prominent businessman reckoned that it was only natural to see the dollar rebound following two years of sluggish performance, but its appreciation can’t last forever, wrote Liberty Times.

Updated : 2021-03-09 09:53 GMT+08:00