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.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The