The U.S. Treasury and Taiwan’s central bank on Friday said they agreed to continue close consultations on macroeconomic and foreign exchange rate matters and both pledged to avoid manipulating the value of their currencies to gain a competitive advantage.
In a joint statement issued by the U.S. Treasury, they said that there were cases where intervention in foreign exchange markets could be considered.
But this "should be reserved for combating excess volatility and disorderly movements in exchange rates, with the expectation that this tool would be considered equally appropriate for addressing excessively volatile or disorderly depreciation or appreciation."
Photo: CNA
The Treasury had kept Taiwan on its "monitoring list" for extra foreign exchange rate scrutiny as part of its latest semi-annual currency report, which found in June that no major trading partner was manipulating its currency for a trade advantage.
Taiwan’s central bank issued a separate statement in which it reiterated that the U.S. Treasury did not ask for the Taiwan dollar to appreciate.
In May, a surge in the Taiwan dollar’s value to a two-year high against the greenback had
prompted speculation
that this was because of a demand by Washington for an appreciation, which Taiwan’s president denied.
"During the consultations, the U.S. Treasury Department never requested an appreciation of the Taiwan dollar," Taiwan’s central bank said in the statement on Friday. "Moving forward, the bank and the U.S. Treasury Department will continue to exchange views on macroeconomic and exchange rate policies based on our positive working relationship."
Taiwan’s central bank said it committed that starting in 2026, it would move to quarterly disclosures of its currency interventions from its current semi-annual disclosure rate.
The bank said that the statement was unrelated to joint Taiwan-US tariff negotiations as it is not a member of a cabinet-level Taiwan-U.S. Economic and Trade Working Group.
Netherlands-based semiconductor equipment supplier ASML Holding NV yesterday said that it is planning to hire an additional 1,000 people in Taiwan this year in response to growing demand from clients. ASML had previously planned to recruit 600 people this year, but that the plan has been adjusted upward, ASML vice president and ASML Taiwan general manager Grace Wang (汪佳慧) told reporters. ASML has a workforce of more than 4,500 in Taiwan, accounting for about 10 percent of its global total, Wang said. This year’s recruitment campaign would focus on adding people in the customer support, manufacturing and supply chain domains to assist ASML
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Nvidia Corp yesterday announced that CEO Jensen Huang (黃仁勳) would attend an employee meeting in Taipei tomorrow to celebrate the launch of the company’s Taiwan headquarters project. Huang would attend a gathering at the site of Nvidia’s planned headquarters in Beitou Shilin Technology Park (北投士林科技園區), the company said in a statement. After arriving in Taiwan on Saturday last week, Huang told reporters that he plans to meet with Quanta Computer Inc (廣達) chairman Barry Lam (林百里) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman C.C. Wei (魏哲家), and would attend the groundbreaking ceremony for Nvidia’s Taiwan headquarters tomorrow. Nvidia has not yet applied
Huawei Technologies Co (華為) said it has come up with a new pathway to shorten its gap with industry leader Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), potentially achieving a breakthrough in making advanced semiconductors without cutting-edge equipment. Right now there is about a five-year gap between what TSMC is capable of and what Huawei, together with its manufacturing partner Semiconductor Manufacturing International Corp (中芯), can produce. Huawei is to start making 1.4-nanometer chips by 2031 with its own “LogicFolding” technology, Huawei semiconductor chief He Tingbo (何庭波) said in a rare public appearance during a chip conference yesterday, while TSMC has
RSS