The central bank yesterday said that Taiwan did not carry out one-sided currency intervention as the US has claimed.
The nation’s monetary policymaker released a statement after the US Department of the Treasury submitted a report on foreign exchange policies of major trading partners to the US Congress on Friday, which put Taiwan, China, South Korea, Japan and Germany on a watch list for an “enhanced analysis” of the nations’ practices.
The US Treasury has listed three criteria to monitor unfair trade advantages against the US, of which Taiwan met two, according to the report.
The report said that Taiwan “engaged in persistent net foreign currency purchases through most of last year.”
“In light of Taiwan’s large current account surplus, such interventions are concerning,” the report said.
The report said that as of the end of last year, Taiwan has spent 2.4 percent of its GDP on net foreign exchange purchases, surpassing the US Treasury’s criterion of 2 percent.
The figure “is an estimate” of the US Treasury only, the central bank said in its statement.
The report also said that “[Taiwanese] authorities should limit foreign exchange interventions to the exceptional circumstances of disorderly market conditions, as well as increase the transparency of reserve holdings and foreign exchange market intervention.”
The US Treasury also said that Taiwan has a material current account surplus of 14.6 percent of GDP, exceeding 3 percent of its criterion.
Taiwan’s bilateral goods trade surplus with the US stood at US$14.9 billion last year, falling short of the US Treasury’s threshold, according to the report.
However, the US Treasury’s figure greatly exceeded last year’s US$5.3 billion trade surplus based on Ministry of Finance data, the central bank said.
GEOPOLITICAL RISKS: The company has a deep collaboration with TSMC, but it is also open to working with Samsung Electronics Co and Intel Corp, Nvidia’s CEO said Nvidia Corp, the world’s biggest artificial intelligence (AI) GPU supplier, yesterday said that it is diversifying its supply chain partners in order to enhance supply chain resilience amid geopolitical tensions. “All of our supply chain is designed for maximum diversity and redundancy so that we can have resilience. Our company is very big and so we have a lot of customers depending on us. And so our supply chain resilience is very important to us. We manufacture in as many places as we can,” Nvidia founder and chief executive officer Jensen Huang (黃仁勳) said in response to a reporter’s question in
DIVERSIFICATION: The chip designer expects new non-smartphone products to be available next year or in 2025 as it seeks new growth engines to broaden its portfolio MediaTek Inc (聯發科) yesterday said it expects non-mobile phone chips, such as automotive chips, to drive its growth beyond 2025, as it pursues diversification to create a more balanced portfolio. The Hsinchu-based chip designer said it has counted on smartphone chips, power management chips and chips for other applications to fuel its growth in the past few years, but it is developing new products to continue growing. “Our future growth drivers, of course, will be outside of smartphones,” MediaTek chairman Rick Tsai (蔡明介) told shareholders at the company’s annual general meeting in Hsinchu City. “As new products would be available next year
BIG MARKET: As growth in the number of devices and data traffic accelerates, it will not be possible to send everything to the cloud, a Qualcomm executive said Qualcomm Inc is betting the future of artificial intelligence (AI) will require more computing power than what the cloud alone can provide. The world’s largest maker of smartphone processors is transitioning from a communications company into an “intelligent edge computing” firm, Qualcomm senior vice president Alex Katouzian said. The edge in question is the mobile device that a user taps to access a network or service, and Katouzian used his time headlining one of the major keynote events at the Computex show in Taipei to make the case for how big a market that would be. The US company’s chips help smartphones harness
At a red-brick factory in the German port city of Hamburg, cocoa bean shells go in one end and out the other comes an amazing black powder with the potential to counter climate change. The substance, dubbed biochar, is produced by heating the cocoa husks in an oxygen-free room to 600°C. The process locks in greenhouse gases and the final product can be used as a fertilizer, or as an ingredient in the production of “green” concrete. While the biochar industry is still in its infancy, the technology offers a novel way to remove carbon from the Earth’s atmosphere, experts have said. Biochar could
RSS