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Taiwan Central Bank to stop currency from rising on foreign speculative fund flows

Taiwan Central Bank to stop currency from rising on foreign speculative fund flows

Taiwan's Central Bank of China will not let the island's currency rise from foreign speculative fund flows, Gov. Perng Fai-nan said Monday.
In response to a question by a lawmaker on whether Thailand's recent currency appreciation could happen on the island, Perng said he "has sympathy" for the Thai situation, but added it wouldn't occur in Taiwan, which has the world's third-largest foreign exchange reserves.
Perng said foreign investor funds in Taiwan now total US$201.7 billion (euro152.3 billion), all in American dollars, of which US$140 billion is short-term capital.
Taiwan's foreign exchange reserves at the end of November amounted to US$265.14 billion.
Perng told lawmakers the central bank has effectively drained excess liquidity from the banking system through daily issues of negotiable certificates of deposit and CDs, and monthly sales of one-year paper.
"The central bank has mopped up nearly all the excess liquidity from the banking system," he said.
He said the banking system now has excess reserves of around NT$5 billion (US$156 million; euro118 million).


Updated : 2021-05-17 09:37 GMT+08:00