# Taiwanese currency depreciation and economic outlook > Live situation record from CLSTR: https://clstr.news/situations/taiwanese-currency-depreciation-and-economic-outlook > Updated: 2026-10-22T01:32:00.000Z. Sources: 6. Developments: 2. The New Taiwan Dollar (TWD) has experienced significant depreciation, falling below the 32.5 mark against the US Dollar. This volatility was initially driven by massive foreign capital outflows, with investors selling approximately $19.4 billion in Taiwanese stocks between October 12 and 16. The Central Bank of the Republic of China (Taiwan) responded by pledging to monitor capital flows and intervene as necessary to maintain “dynamic stability.” Despite the currency weakness, Taiwan’s economic outlook remains robust. Projections from the National Development Council and various research teams suggest annual GDP growth between 11.05% and 11.6%, largely fueled by the global AI supply chain. The continued pressure on the TWD is attributed to several factors: foreign investors converting stock proceeds to USD following volatility in US AI equities, exporters holding USD reserves in anticipation of further depreciation, and structural demands for USD assets from local life insurance institutions and overseas investments. The Central Bank has maintained a policy of market adjustments rather than aggressive interest rate hikes to manage the situation. ## Timeline ### 2026-10-22: Taiwan economy projected to grow 11.6% amid New Taiwan Dollar depreciation Despite projected GDP growth of up to 11.6% driven by the AI sector, the New Taiwan Dollar faces depreciation pressure from foreign capital outflows and exporter hedging. 3 sources. https://clstr.news/cluster/taiwan-economy-projected-to-grow-116-amid-new-taiwan-dollar-depreciation ### 2026-10-18: Taiwanese Dollar falls below 32.5 mark amid capital outflows The New Taiwan Dollar fell below the 32.5 mark against the US Dollar amid heavy foreign capital outflows from Taiwan's stock market, prompting the Central Bank to promise market intervention. 3 sources. https://clstr.news/cluster/taiwanese-dollar-falls-below-325-mark-amid-capital-outflows --- Cite as: Taiwanese currency depreciation and economic outlook. CLSTR, https://clstr.news/situations/taiwanese-currency-depreciation-and-economic-outlook