TAIPEI (TVBS News) — Chunghwa Telecom (中華電信) assured stakeholders that the currency fluctuation poses no threat to its operations on Tuesday (May 6). The company's chairman explained that effective hedging measures have been implemented to mitigate adverse effects. The recent appreciation of the New Taiwan dollar against the U.S. dollar has sparked concerns over its potential impact on Taiwan's export industry.
Earlier today, the New Taiwan dollar surpassed the 30-to-1 exchange rate against the U.S. dollar. The ongoing U.S.-China trade tensions have contributed to market anxiety over the rapid currency appreciation's impact on exports. Despite this, Chunghwa Telecom Chair Chien Chih-cheng (簡志誠) assured that the company remains unaffected due to its limited foreign equipment purchases.
Chunghwa Telecom's U.S. subsidiary conducts transactions in U.S. dollars, which offsets any potential exchange rate gains or losses. The chairman elaborated on this point after attending an AI technology seminar. He also highlighted that the company's financial team employs dollar-related hedging strategies when handling international subsidiary contracts.
Regarding investments in submarine cables and satellites, the chairman noted that these expenditures are also in U.S. dollars. However, they do not significantly impact the company's overall revenue and spending as they are not one-time payments.