TAIPEI (TVBS News) — Taiwan's government issued stern warnings against currency speculation on Tuesday (May 6) as officials moved to protect the island's economic stability amid recent market volatility. Premier Cho Jung-tai (卓榮泰), the head of Taiwan's government, emphasized that speculative market forces would not be permitted to undermine Taiwan's historically stable exchange rate and announced that the Central Bank (中央銀行), Taiwan's monetary authority, would investigate potential illegal trading activities.
Central Bank Governor Yang Chin-long (楊金龍) expressed concern over the New Taiwan dollar's recent sharp appreciation and subsequent market disruptions observed the previous day. Financial regulators have heightened their alerts regarding potentially destabilizing currency speculation, emphasizing that authorities remain watchful and prepared to intervene if necessary to maintain orderly market conditions.
While addressing journalists at the Legislative Yuan (立法院), Taiwan's parliament, Premier Cho explained that recent American requests for public input under the "Trade Expansion Act" represented standard procedure rather than targeted action. He carefully noted that formal negotiations between Taiwan and the United States have not yet commenced. The premier characterized last week's preliminary discussions as productive and constructive, establishing positive groundwork for future engagement, while emphasizing that currency matters were not raised during these talks.
The premier reinforced his administration's dedication to maintaining exchange rate stability through market-oriented approaches rather than artificial interventions. He expressed confidence in the Central Bank's capacity to monitor currency movements within legal frameworks, ensuring that Taiwan's broader economic interests remain protected from excessive volatility that could potentially disrupt trade relationships or financial markets. ★