Taiwan Central Bank to Step Up Two-Way Intervention in Second Half to Curb Currency Volatility

The Taiwan dollar has recently been swayed by fluctuations in the U.S. Dollar Index, changing valuations in the AI sector and foreign capital flows. Frequent inflows and outflows by overseas investors can fuel expectations of continued appreciation or depreciation. The central bank’s efforts to stabilize the currency market are primarily aimed at preventing short-term capital flows from amplifying volatility and disrupting export pricing, corporate hedging and financial-market order.

In the second half of this year, the central bank will make its currency-market operations more flexible and intervene in both directions as conditions warrant, seeking to deter one-way bets on appreciation or depreciation of the Taiwan dollar. It will also coordinate with exporters to sell U.S. dollars at appropriate times and increase market supply. Existing reports did not disclose the amount of intervention or the exact dates of the operations.