In what is expected to be his final speech to the legislature’s Finance Committee, central bank Governor Perng Fai-nan (彭淮南) yesterday reiterated his intention to retire in February next year and took solace in Taiwan’s avoidance of two financial crises during his tenure.
The 78-year-old governor said he would retire when his term expires in February next year after more than 40 years of public service and 20 years as the nation’s top monetary policymaker.
Perng refused to comment on potential candidates to fill his vacancy, saying it is up to President Tsai Ing-wen (蔡英文) to name his successor.
He nodded in agreement when lawmakers said the next governor must possess professional prowess, moral integrity and diligence.
Prospective candidates include central bank Deputy Governor Yang Chin-long (楊金龍), former deputy governor Shea Jia-dong (許嘉棟) and Nomura Research Institute (野村綜合研究所) chief economist Richard Koo (辜朝明), who is the son of presidential adviser and Taiwanese independence advocate Koo Kwang-ming (辜寬敏).
“I took comfort in the fact that two recent global financial crises had a relatively small impact on Taiwan,” Perng said when asked to name his greatest achievements in office.
Under his stewardship, the central bank has kept the New Taiwan dollar dynamically stable against the US currency in which many Taiwanese exporters settle accounts with clients overseas.
To that end, Perng said he will not allow local banks to sell non-delivery forward (NDF) contracts, because currency speculators tend to use the tool to manipulate foreign-exchange markets.
The ban introduced during the 1997 regional financial storm has allowed the central bank to help stabilize the local currency and the economy as a whole, he said.
The NT dollar slipped from NT$28 to NT$35 at that time with foreign-exchange reserves shrinking to US$90 billion, compared with US$447.21 billion last month, Perng said, dismissing suggestions that Taiwan does not need to worry about currency speculation given its ample foreign reserves.
The central bank has allowed offshore banking units to operate NDF business and firms can find other hedging tools, he said.
Perng voiced support for integration of the banking industry, especially for state-owned Bank of Taiwan (台銀), Land Bank of Taiwan (土銀) and The Export-Import Bank (輸出入銀行), saying that they should be given greater flexibility to adjust their scale to optimal levels.
Hopefully, local lenders can become more competitive through consented integration, because over-banking has caused many to underperform in terms of financial proficiency over the years, Perng said.
Shares in Taiwan closed at a new high yesterday, the first trading day of the new year, as contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) continued to break records amid an artificial intelligence (AI) boom, dealers said. The TAIEX closed up 386.21 points, or 1.33 percent, at 29,349.81, with turnover totaling NT$648.844 billion (US$20.65 billion). “Judging from a stronger Taiwan dollar against the US dollar, I think foreign institutional investors returned from the holidays and brought funds into the local market,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said. “Foreign investors just rebuilt their positions with TSMC as their top target,
REVENUE PERFORMANCE: Cloud and network products, and electronic components saw strong increases, while smart consumer electronics and computing products fell Hon Hai Precision Industry Co (鴻海精密) yesterday posted 26.51 percent quarterly growth in revenue for last quarter to NT$2.6 trillion (US$82.44 billion), the strongest on record for the period and above expectations, but the company forecast a slight revenue dip this quarter due to seasonal factors. On an annual basis, revenue last quarter grew 22.07 percent, the company said. Analysts on average estimated about NT$2.4 trillion increase. Hon Hai, which assembles servers for Nvidia Corp and iPhones for Apple Inc, is expanding its capacity in the US, adding artificial intelligence (AI) server production in Wisconsin and Texas, where it operates established campuses. This
H200 CHIPS: A source said that Nvidia has asked the Taiwanese company to begin production of additional chips and work is expected to start in the second quarter Nvidia Corp is scrambling to meet demand for its H200 artificial intelligence (AI) chips from Chinese technology companies and has approached contract manufacturer Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to ramp up production, sources said. Chinese technology companies have placed orders for more than 2 million H200 chips for this year, while Nvidia holds just 700,000 units in stock, two of the people said. The exact additional volume Nvidia intends to order from TSMC remains unclear, they said. A third source said that Nvidia has asked TSMC to begin production of the additional chips and work is expected to start in the second
US President Donald Trump on Friday blocked US photonics firm HieFo Corp’s US$3 million acquisition of assets in New Jersey-based aerospace and defense specialist Emcore Corp, citing national security and China-related concerns. In an order released by the White House, Trump said HieFo was “controlled by a citizen of the People’s Republic of China” and that its 2024 acquisition of Emcore’s businesses led the US president to believe that it might “take action that threatens to impair the national security of the United States.” The order did not name the person or detail Trump’s concerns. “The Transaction is hereby prohibited,”
RSS