The central bank will adopt foreign exchange control measures?

Yang Jinlong explained at 4 points to clarify misunderstandings.

(Photo by reporter Chen Meiying)

[Reporter Chen Meiying/Taipei Report] Yang Jinlong, President of the Central Bank, attended the Legislative Yuan's meeting yesterday and was prepared for inquiry. Some members asked how the central bank would respond to such issues as tensions between the two sides of the Taiwan Strait, or if the United States raised interest rates sharply and foreign capital would withdraw US$100 billion in the short term, the central bank said. , some media reports are not the same as the content of the CEO's answer.

1. As of the end of June, my country’s foreign exchange deposits stood at US$549 billion, and foreign currency liquidity was as high as US$691.4 billion; my country’s international balance of payments was sound, foreign trade was in surplus, and foreign debt was extremely low; in addition, Chinese people held foreign exchange deposits of more than 270 billion yuan. With more than $800 billion in net assets in U.S. dollars and overseas, these resources are sufficient to cope with the substantial movement of international capital.

For example, the Asian financial crisis in 1997, the global financial crisis from 2008 to 2012, the European debt crisis and other major international events, the Bank adopted flexible and effective monetary policy and foreign exchange management measures to stabilize the market and allow Taiwan to survive the crisis.

Please read on...

2. Since the beginning of this year, the United States has raised interest rates, the international stock market has plummeted, and foreign investors have sold over Taiwan stocks and remitted them. So far, the foreign exchange market has been operating smoothly and stable.

If further interest rate hikes in the United States result in a large outflow of foreign capital, the Bank has sufficient capacity to respond to fluctuations in the foreign exchange market.

3. As for cross-strait tensions, looking at history, Taiwan has never implemented foreign exchange controls even in the 1995 Taiwan Strait missile crisis and China's military exercises in early August this year. Through foreign exchange control measures, it is sufficient to maintain financial market stability.

4. Members questioned Assuming tensions between the two sides of the Taiwan Strait or a substantial interest rate hike in the United States, and a large amount of foreign capital withdrawing in the short term, the Bank will not take foreign exchange control measures.

Grasp the economic pulse point with one hand, I subscribe to the free finance Youtube channel

I'm already a friend, thanks

Welcome to [Freedom Finance]

Feel good

Liked already, thank you.

related news