COMPETITIVE DEVALUATION?The Ministry of Economic Affairs said it is to keep a close watch on currencies in the region, and advised exporters to prepare for currency volatility
Date: Dec 12, 2016
By: Staff writer, with CNA
The central bank is confident it can keep the New Taiwan dollar stable even if the US Federal Reserve raises its key interest rates at a meeting scheduled for tomorrow and Wednesday.
The bank said yesterday that a stronger US dollar resulting from a rate hike by the Fed has more or less been factored in by global financial markets, but it would monitor the markets’ response to the Fed’s decision.
While the value of the NT dollar is determined by the market, the bank said it is capable of maintaining the stability of the currency.
On Friday, the NT dollar closed at NT$31.86 against the US dollar, marking a 1.57 percent drop since the beginning of October, as foreign investors continued to repatriate funds based on the strength of the greenback. [FULL STORY]