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Four foreign banks punished by Taiwan's central bank over speculation case

Banks ruled to have helped eight grain companies speculate against New Taiwan dollar

Taiwan and US dollars 

Taiwan and US dollars  (CNA photo)

TAIPEI (Taiwan News) — Four foreign banks have been punished by Taiwan’s central bank for their involvement in currency speculation against the New Taiwan dollar, with Deutsche Bank banned from deliverable and non-deliverable forwards trading (DF/NDF) as well as trading in forex derivatives.

The central bank outlined its punishments for the Taipei branches of Deutsche Bank, Citigroup, ING, and Australia and New Zealand Banking Group Ltd (ANZ) via a statement on Sunday (Feb. 7).

A total of six banks were alleged to have played a role in helping eight grain companies speculate against the New Taiwan dollar since July 2019, with transactions in one year being valued at roughly US$11 billion, reports said.

Deutsche Bank will be banned from trading both DF and NDF, and its operations concerning forex derivatives trading will be suspended for two years, according to the central bank.

ING and ANG will be prohibited from trading DF and NDF for nine months, while Citigroup will be suspended from the DF trading business for two months. The punishment will take effect on Monday (Feb. 8).

After global demand for Taiwan's tech products rose, the nation's currency has hit its highest value in 23 years against the U.S. dollar, and the central bank has been trying to restrain the currency rise. The central bank commenced an investigation into currency speculation by grain firms in January.

Updated : 2022-01-22 02:40 GMT+08:00