Allowing the New Taiwan dollar depreciate to NT$32 against the US dollar would boost the nation’s exports, the new chairman of the Taiwan Electrical and Electronic Manufacturers’ Association (TEEMA, 電電公會) said yesterday.
Since Taiwan is an export-oriented economy, the government’s currency policy has a tremendous impact on exports, Cheng Uei Precision Industry Co (正崴精密) chairman Gou Tai-chiang (郭台強) said, after he was elected TEEMA chairman to replace Arthur Chiao (焦佑鈞)
The government should keep a weak NT dollar to counter the recent depreciation of the Japanese yen and the South Korean won, he added.
The NT dollar was little changed yesterday at NT$30.03 against the greenback, rising 0.1 percent for the week, central bank data showed.
The NT dollar is expected to trade at an average rate of 29.87 against the US dollar this year, Citigroup Global Markets Inc said in its Global Economic Outlook and Strategy report, released on Wednesday.
“The NT dollar is torn between opposing forex forces of weakness in Japanese yen and [South] Korean won, and the stronger US dollar and Chinese yuan,” Citi said in the report.
TEEMA, one of the nation’s biggest industrial associations, has more than 3,600 members, including Hon Hai Precision Industry Co Ltd (鴻海精密), MediaTek Inc (聯發科) and Compal Electronics Inc (仁寶電腦).