On Friday, the central bank left its key interest rate unchanged at a record low. The bank kept its rediscount rate, charged to commercial lenders for 10-day loans, at 1.375 percent at its quarterly policy meeting.
The governor made his first public pledge to bolster the currency in August 1998, saying the bank would "step in to restore market order whenever the currency fails to reflect economic fundamentals."
The NT dollar had slid 19 percent in the previous 12 months amid Asia's financial crisis. The South Korean won fell 38 percent in the same period as the country sought a US$60 billion international bailout, and the Thai baht fell 29 percent before interest rates were raised to as much as 25 percent.
In March 2000, Perng said the bank was prepared to buy NT dollars after Chen won the last presidential election, stoking concerns among investors about a potential military standoff with China.
On Sept. 12, 2001, the day after terrorist attacks on the US, the central bank again said it was ready to defend the currency. The NT dollar strengthened against its US counterpart in the two days following the attacks.
The central bank has also used less direct tactics to curb currency swings.
Perng's deputy, Hsu Yi-hsiung (徐義雄), said in July 2001 that the bank objects to currency analysts releasing their currency forecasts to the media.
"Banks are free to advise clients about their predictions of the New Taiwan dollar," Hsu said in an interview at the time. "But we object to expressing views to the press to create a trend."
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