Taiwan Central Bank in contact with US to keep off currency watch list
As the trade war with China and Taiwan continues to accelerate, and the Central Bank of Taiwan adapts its policies to protect the Taiwanese economy, some in Taiwan have speculated that Taiwan may be in danger of qualifying as a currency manipulator by U.S. standards.
The Taiwan Central Bank has previously addressed these concerns, noting that they are monitoring the situation closely, and are also in close contact with relevant offices of the U.S. government which are keeping them informed on currency exchange markets, interest rates, and reasons behind any changes.
CNA reports that the U.S. Treasury Department will release a new list of currency manipulators and a watch list of potential manipulators this October. However, Taiwan Central Bank has been monitoring the situation and remains in contact with the U.S.
Although Taiwan has an inflated account surplus with the United States, which is one of the markers that may put Taiwan on the currency watch list, the Central Bank said that U.S. authorities are aware of Taiwan’s particular circumstances. The report urges Taiwan to balance trade with the U.S. across multiples industries to avoid excessive surplus and trade imbalance with the U.S.
While urging business and investors not to worry about currency fluctuations or trade relations with the U.S., the Central Bank report emphasized that in light of the ongoing U.S.-China trade war it is very important for Taiwanese business to return with investment back to Taiwan.
By Taiwan News