Far Eastern backs currency intervention in Taiwan

17 Oct '20

2 min read

Pic: Shutterstock

Taiwan's textile firm Far Eastern New Century Corp recently expressed support for the central bank's intervention in the foreign exchange market aimed at capping the Taiwan dollar's appreciation. In a statement, the company said the bank's efforts to stabilise the Taiwan dollar are among the critical elements driving the export-oriented domestic economy.

The corporation fully supports the central bank's measures to boost Taiwan's global competitive edge and it also has a good understanding of the international pressure the bank faced when it took action to intervene in the forex market, it said.

The statement was issued after domestic media reports quoted Far Eastern chairman Douglas Hsu as saying that the central bank's market intervention would influence how other countries perceive Taiwan. The news outlets interpreted Hsu's comments as urging the central bank not to intervene in the local forex market, according to the company.

The company said a sharp hike in the Taiwan dollar's value against the US dollar, mostly in September, came from large foreign fund inflows into the country, adding that volatile fluctuations of the local currency have been very hard on the local economy, so Far Eastern sided with the central bank in its fight against sudden foreign fund inflows to protect Taiwan's economy, a news agency reported.

In September, the US dollar fell about 1.38 per cent against the Taiwan dollar.

Fibre2Fashion News Desk (DS)

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