The central bank has repeatedly called on the public and exporters to refrain from selling US dollars, but instead unite to help stabilize the New Taiwan dollar.
The nation’s top monetary policymaker early this week issued the pleas on Facebook, saying that as more of its global peers are using social media to convey their messages, it would follow suit.
Local companies should not take part in panic selling of the US dollar for fear that the greenback would depreciate further, the bank said in a post.
Photo: Billy H.C. Kwok, Bloomberg
It called the practice “suicidal,” saying that it would not only weaken the US dollar, but also harm corporate profitability.
A strong NT dollar has significantly eroded net income at DRAM chipmaker Nanya Technology Corp (南亞科技) and smartphone camera lens supplier Largan Precision Co (大立光), among other tech firms.
Taiwan Semiconductor Manufacturing Co (台積電) yesterday identified foreign-exchange risks as a factor that might affect its earnings, as it used an exchange rate higher than NT$28 versus the greenback in its revenue guidance for this quarter.
As of yesterday, the NT dollar had picked up 5.76 percent since late last year, next only to euro’s 8.33 percent advance and the yuan’s 7.74 percent gain during the same period, the central bank said.
Meanwhile, the won appreciated 5.32 percent, while the yen gathered 4.44 percent, over the same period.
“A stable exchange rate is favorable for all,” the central bank said in another post. “All participants can lend a helping hand in maintaining an orderly market.”
Ongoing foreign-exchange volatility has a lot to do with the practice of major global central banks printing more money, especially the US Federal Reserve, to support their economy, it said.
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