TAIPEI (TVBS News) — The New Taiwan dollar strengthened to 30.145 against the U.S. dollar on Monday (May 5), a substantial 9-cent appreciation that prompted swift action from officials. Central Bank of the Republic of China (CBC, 央行), Taiwan's monetary authority, Governor Yang Chin-long (楊金龍) called an urgent press conference to address market concerns, firmly stating the bank would not manipulate exchange rates and denying any negotiations with U.S. officials on currency matters.
In his statement, Governor Yang emphasized that Taiwan has consistently avoided designation as a currency manipulator by the United States in recent years. The central bank highlighted Taiwan's exceptional economic performance, citing a 4.59% growth rate last year and an impressive 5.37% expansion in the first quarter of 2025, outperforming major economies including the United States, China, Singapore, and South Korea. Officials attributed the recent exchange rate volatility to two primary factors: substantial foreign capital flowing into Taiwan's equity markets and increased U.S. dollar supply driven by expectations of further New Taiwan dollar appreciation.
The Central Bank further dispelled rumors by clarifying it has no involvement in the Taiwan-U.S. economic and trade working group and has received no requests from the U.S. Treasury Department regarding New Taiwan dollar appreciation. Officials explained that Taiwan's trade surplus with the United States stems from growing demand for Taiwan's information and communication technology products rather than currency manipulation. The bank also firmly rejected media reports about a so-called "Mar-a-Lago Accord," dismissing such information as unfounded market speculation that lacks factual basis.
According to the CBC, U.S. Treasury Secretary Scott Bessent has confirmed there are neither plans to demand currency appreciation nor intentions to issue century bonds, with the U.S. maintaining its existing debt issuance strategy. In a pointed message to financial analysts and commentators, the Central Bank issued a stern warning against making speculative statements that could destabilize Taiwan's foreign exchange market and potentially damage the broader economy. Officials cautioned that fostering irrational market expectations and behaviors would ultimately prove detrimental to the very stakeholders participating in such speculation. ★