TAIPEI (TVBS News) — Taiwan's central bank denies currency appreciation predictions Tuesday (Nov. 4), rejecting reports claiming the New Taiwan dollar will strengthen to NT$30.2 (around US$1.01) by year-end. The Central Bank of China (CBC, 中央銀行) called media speculation unfounded amid claims of 6% annual appreciation.
The bank blamed May speculation about U.S. Treasury involvement for triggering irrational manufacturer hedging. Unfounded predictions of NT$28 (around US$0.93) appreciation prompted foreign investors to transfer significant funds, causing second-quarter market volatility.
CBC intervened to stabilize markets through manufacturer guidance and investor warnings. The bank issued multiple press releases denying U.S. Treasury requested currency appreciation, urging foreign exchange diversification. These measures restored market balance after second-quarter volatility.
The currency depreciated 6.7% from NT$28.828 (around US$0.96) in July to NT$30.906 (around US$1.03) Tuesday. CBC measures successfully eased irrational appreciation expectations since third quarter, with the bank dismissing exchange rate media reports as speculative.