Tue, Nov 23, 2010 - Page 12 News List

No gag orders on NT dollar: central bank

By Kevin Chen  /  Staff Reporter

The central bank yesterday denied it had forbidden banks to comment on the movement of NT dollars at a time when the local currency is facing appreciation pressure amid positive economic prospects and continued capital inflows.

The bank said in an e-mailed statement that five financial institutions, including SinoPac Financial Holdings Co (永豐金控), Chinatrust Commercial Bank (中國信託銀行) and Capital Securities Corp (群益證券), have been openly forecasting the exchange rate of the NT dollar.

Moreover, Reuters Newswires also publishes NT dollar exchange rate forecasts by 12 domestic and foreign financial firms on its Web site, the central bank said, dismissing a report by the Chinese-language China Times yesterday that the bank had placed a gag order on banks.

Despite the central bank’s denial, local economists and currency traders have long been discouraged to openly comment on the NT dollar’s exchange rate or to make forecasts, although some of them did talk to the press on condition of anonymity.

As the local currency’s exchange rate is deemed as the central bank’s jurisdiction, other government agencies have tended to avoid the issue when approached by the press.

Financial Supervisory Commission Chairman Chen Yuh-chang (陳裕璋) yesterday told the legislature’s Finance Committee that he had “no comment” on the report, cable TV network UBN reported.

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