The central bank has amended foreign-exchange regulations for companies and individuals to give it more flexibility in curbing currency speculation in a timely fashion.
The changes, due to take effect on Feb. 17, come after moral suasion failed to discourage companies, especially exporters, from currency trading practices intended to hedge against foreign-exchange losses, but contributed to the New Taiwan dollar’s appreciation.
The central bank on Wednesday evening announced plans to revise foreign-exchange rules that over the years cap foreign currency settlements at US$50 million for companies and US$500,000 for individuals per year.
Photo: CNA
It added a clause allowing it to adjust the limits whenever necessary to maintain an orderly and stable foreign-exchange market.
The bank has called on local companies to help maintain the local currency’s stability, emphasizing that a strong NT dollar would hurt their own profitability.
The NT dollar has repeatedly climbed above the NT$28 mark in intraday trading against the greenback, before closing lower due in part to the central bank’s alleged last-minute intervention.
Major technology firms have told investors that unfavorable foreign exchanges are eating away their profits, despite strong revenue growth.
Some local firms reportedly borrow US dollars abroad and sell them at higher rates on the local market to guard against foreign-exchange losses.
Some have gone so far as to create front companies in a bid to circumvent the annual US$50 million limit per company, local reports said.
Most companies have never demonstrated settlement needs larger the threshold until recently, the central bank said last month, suspecting currency speculation on the part of exporters.
“The current indiscriminate treatment appears inadequate and the central bank would make timely adjustments to reflect real corporate needs,” the bank said, adding that the latest changes aim to close the loopholes.
Companies with greater settlement needs can file applications through their banks, it said.
Other companies allegedly seek to profit by borrowing US dollars from affiliates abroad with a view to benefitting from favorable exchange rates later, reports said.
Companies should seek funding in conventional ways and avoid questionable currency trading, the bank said.
The bank is also weighing disciplinary measures against four foreign lenders for helping grain merchants engage in currency trading, in contravention of foreign-exchange rules.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
‘IMMENSE SWAY’: The top 50 companies, based on market cap, shape everything from technology to consumer trends, advisory firm Visual Capitalist said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) was ranked the 10th-most valuable company globally this year, market information advisory firm Visual Capitalist said. TSMC sat on a market cap of about US$915 billion as of Monday last week, making it the 10th-most valuable company in the world and No. 1 in Asia, the publisher said in its “50 Most Valuable Companies in the World” list. Visual Capitalist described TSMC as the world’s largest dedicated semiconductor foundry operator that rolls out chips for major tech names such as US consumer electronics brand Apple Inc, and artificial intelligence (AI) chip designers Nvidia Corp and Advanced
Pegatron Corp (和碩), an iPhone assembler for Apple Inc, is to spend NT$5.64 billion (US$186.82 million) to acquire HTC Corp’s (宏達電) factories in Taoyuan and invest NT$578.57 million in its India subsidiary to expand manufacturing capacity, after its board approved the plans on Wednesday. The Taoyuan factories would expand production of consumer electronics, and communication and computing devices, while the India investment would boost production of communications devices and possibly automotive electronics later, a Pegatron official told the Taipei Times by telephone yesterday. Pegatron expects to complete the Taoyuan factory transaction in the third quarter, said the official, who declined to be
RSS