The central bank would intervene in the market whenever necessary to help stabilize the New Taiwan dollar, central bank Governor Yang Chin-long (楊金龍) said yesterday, adding that it is concerned Taiwan might be placed on the US watchlist for currency manipulation.
The Control Yuan recently sent letter inquiring about the central bank’s market regulation efforts, Yang told a meeting of the legislature’s Finance Committee on the NT dollar’s appreciation and property price hikes.
“It is the central bank’s top responsibility to stabilize foreign exchanges,” he said.
Photo: Peter Lo, Taipei Times
The central bank has often stepped in toward the end of trading sessions to moderate the NT dollar’s appreciation against the US dollar.
The NT dollar had as of yesterday picked up 3.32 percent against the greenback this year and has on several occasions temporarily surpassed the NT$28.5 defense threshold allegedly set by Yang’s predecessor, Perng Fai-nan (彭淮南).
The central bank has to take action when noticing currency speculation and disorderly fund movements, Yang said.
The governor declined to comment on reports that the NT dollar might next year rise to NT$27.5, but said that global investment banks have mixed views about the US dollar’s outlook.
Taiwan is likely to be added to the US watch list after meeting two criteria: having a trade surplus with the US of at least US$20 billion and a current account surplus of more than 2 percent of GDP, Yang said.
The US normally updates its currency list twice a year, in April and October, but has not released a list so far this year, Yang said, adding that the central bank would try to communicate with the US on the matter.
Yang warned against loose real-estate lending, saying that the government would continue its coordinated efforts to thwart property speculation without affecting real-estate demand.
The endeavor is in the initial stage, but further measures might be implemented if the intended effect is not achieved, Yang said.
In certain sectors of the commercial real-estate market, the price development has been reasonable, as companies are returning production capacity home from China, he said.
Property prices in sectors without such support should be steadier, Yang said, adding that investment accounts for about 14 percent of real-estate financing.
In a best case scenario, the government would achieve its goal of curbing property speculation without putting pressure on local banks, Yang said.
UNWANTED ATTENTION: In the past two months, the automaker has made headlines, with a Chinese military ban of its vehicles and a protest at an expo Electric vehicle maker Tesla Inc, facing scrutiny in China over safety and customer service complaints, is boosting its engagement with regulators and beefing up its government relations team, industry sources said. Tesla’s change of strategy leading to more behind-the-scenes interaction with policymakers in Beijing compared with relatively little previously shows the seriousness with which the US automaker views the setbacks in its second-biggest market. TALKING SHOP It also comes at a time when China is trying to regulate large and powerful private companies, especially in the technology sector, on concerns about their market dominance. As they do elsewhere, regulators in China, the world’s biggest
Dell Technologies Inc has agreed to sell its Boomi cloud business to private equity firms Francisco Partners and TPG in a cash deal valued at US$4 billion, as part of efforts by chief executive officer Michael Dell to trim down the PC maker. The deal is expected to close by the end of this year, the companies said in a statement on Sunday without providing additional details of the terms. Dow Jones had earlier reported that the companies were near a deal. Boomi specializes in integrating different cloud platforms for companies and has more than 15,000 customers. Dell agreed to acquire the company for
Chinese electric vehicle (EV) start-up Nio Inc (蔚來) reported a narrower first-quarter loss, while warning that a global chip shortage would keep a lid on deliveries. The Shanghai-based company posted a net loss of 451 million yuan (US$68.8 million) in the three months ended March 31, compared with 1.69 billion yuan a year earlier, it said in a statement. It also marked an improvement on the 1.39 billion yuan net loss it posted in the fourth quarter of last year. Revenue rose to 7.98 billion yuan, beating estimates of 7.16 billion yuan. Nio delivered 20,060 vehicles in the quarter, a 423 percent increase from
Intel Corp wants 8 billion euros (US$9.7 billion) in public subsidies toward building a semiconductor factory in Europe, chief executive officer Pat Gelsinger was cited as saying on Friday, as the region seeks to reduce its reliance on imports amid a shortage of supplies. The pitch is the first time that Gelsinger has publicly put a figure on how much state aid he would want, as Intel campaigns to take on Asian rivals in contract manufacturing. “What we’re asking from both the US and the European governments is to make it competitive for us to do it here, compared to in Asia,”