TAIPEI (Taiwan News) — Taiwan’s top financial regulator is reportedly considering allowing listed companies to pay dividends in US dollars, a move aimed at reducing foreign exchange volatility but unlikely to take effect before the peak July dividend season.

According to Bloomberg, the Financial Supervisory Commission is reviewing a proposal that would permit companies to distribute dividends in US currency upon request. The change would reduce the volume of Taiwan dollar conversions currently required, potentially easing short-term fluctuations in the Taiwan dollar.

Sources familiar with the matter said the FSC is assessing implementation details and reviewing the broader regulatory framework, with no clear timeline established. The proposal was reportedly driven by Taiwanese firms holding substantial US dollar assets and with a high proportion of foreign investors.

One source said the measure is unlikely to be implemented before July, when most companies issue dividends, as regulatory adjustments and supporting measures are still under review. The FSC declined Bloomberg’s request for comment.

Bloomberg reported that total cash dividends announced by Taiwan-listed companies for the fiscal year 2025 reached NT$2.2 trillion (US$70 billion). TSMC accounted for the largest share, with quarterly distributions currently scheduled at NT$155.6 billion.

FSC data shows foreign investors held about 45% of the total market capitalization of Taiwan’s stock market last year.

Under current rules, companies must issue dividends in Taiwan dollars. Firms with US dollar revenues must first convert funds into Taiwan dollars before distribution, while foreign investors often convert the payments back into US dollars for repatriation. The process increases foreign exchange costs and can contribute to short-term currency volatility.