Sat, May 27, 2000 - Page 17 News List

Central bank pays US$200 million to support NT dollar

STAFF WRITER

The Central Bank of China (中央銀行) sold at least US$200 million in US greenbacks Thursday in an effort to prevent a slump in the New Taiwan dollar, reports said yesterday.

The intervention came as the PLA began a seven-day artillery firing exercise near the island of Kinmen.

Meanwhile, international investors sold more than US$150 million worth of NT dollars as they remitted money out of Taiwan.

Central Bank governor Perng Fai-nan (彭淮南) and foreign exchange department head George Chou (周阿定) passed Thursday in the bank's foreign-exchange trading room monitoring the situation.

Major foreign exchange banks also received phone calls from central bank officials expressing their concern, according to local media.

The NT dollar strengthened to 30.814 against the US dollar on Thursday, from 30.824 the previous day, on volume of US$432 million. The turnover was about 7 percent lower than the daily average over the past six months.

The NT dollar rose again yesterday, closing at $30.808 against the greenback. Interbank US dollar trading totaled US$315 million.

Central bank officials told reporters yesterday that the bank's target range is between 30.45 and 30.95 against the greenback.

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