Taiwan Central Bank Governor addresses exchange rate and typhoon trading policies

Central Bank of the Republic of China (Taiwan) Governor Yang Jin-long addressed several key economic and operational issues during a report to the Legislative Yuan's Finance Committee.

Regarding the New Taiwan Dollar, Yang explained that recent currency weakness is driven by foreign investors realizing significant profits from the strong performance of Taiwan's semiconductor and electronics sectors. As investors rebalance portfolios and lock in gains, they have been remitting funds out of the country. Yang stated that the central bank does not have a specific exchange rate defense line but will continue to use a “willow tree theory” to dynamically adjust the market, allowing for fluctuations while preventing excessive volatility.

On the topic of whether stock market trading should be decoupled from typhoon holidays, Yang noted that such a move involves complex coordination between investors, banks, and exchanges. He indicated that the Financial Supervisory Commission (FSC) should lead the evaluation of such measures, including the feasibility of remote work, before the central bank provides support.

Additionally, Yang confirmed that essential central bank departments, such as the Foreign Exchange Department and the Banking Department, will maintain necessary operations during typhoons to ensure international fund supplies and interbank transfers remain stable.