TAIPEI (TVBS News) — Kuomintang (KMT, 國民黨) Legislator Lai Shyh-bao (賴士葆) on Tuesday (May 6) addressed the dramatic appreciation of the New Taiwan dollar, stating that opposition politicians lack the power to manipulate financial markets.
President Lai Ching-te (賴清德) expressed regret over the exploitation of exchange rates by specific political figures, which has led to market misdirection and irrational expectations. He clarified that the Central Bank (央行) and the Executive Yuan (行政院) have confirmed that tariff negotiations between Taiwan and the U.S. have not addressed currency issues.
Lai Shyh-bao criticized President Lai Ching-te's accusations as biased, attributing the recent 10% surge in the Taiwan dollar against the U.S. dollar to the 32% tariff rate imposed by the U.S. He noted that American media have reported this fluctuation as a potential warning sign for global capital flows.
Lai Shyh-bao also pointed out that the abrupt appreciation of the Taiwan dollar, while indicative of strong competitiveness, has left exporters struggling to adjust. The resulting exchange rate differences have reduced profits by 10%, and manufacturers could face significant challenges if tariffs increase by another 10% to 20%.