UNFAVORABLE FOR EXPORTERS: While non-tech firms ‘take a hard hit,’ high-tech companies remain unmarked in their international sales, the central bank governor said

Taipei Times
Date: Oct 16, 2020
By: Crystal Hsu / Staff reporter

The New Taiwan dollar might trade above the NT$29 level against the greenback in the next six to 12 months, central bank Governor Yang Chin-long (楊金龍) said yesterday at a meeting of the legislature’s Finance Committee.

Asked by lawmakers whether the NT dollar’s fast appreciation would erode exporters’ profitability, Yang said that strong exports would bolster current-account surpluses and demand for the local currency.

“It might become the new normal for the NT dollar to trade above the NT$29 notch against the greenback given Taiwan’s strong exports and the weakening US currency,” Yang said, but declined to comment on potential developments beyond the six-to-twelve-month time frame, saying it would be risky and inappropriate.

The NT dollar rose 1.38 percent against the US dollar last month.    [FULL  STORY]