U.S. fund easing poses challenges to Taiwan’s forex market: central bank

Focus Taiwan
Date: 12/17/2020
By: Pan Tzu-yu, Matthew Mazzetta and Frances Huang

Central Bank Governor Yang Chin-long

Taipei, Dec. 17 (CNA) Taiwan's Central Bank Governor Yang Chin-long (楊金龍) said Thursday that a move by the United States to ease its monetary policy to pump large funds into the economy has posed challenges for Taiwan in its attempts to maintain the stability of the foreign exchange market.

Speaking at a news conference after the central bank's quarterly policy-making meeting, Yang said amid the current "super easing" policy adopted by Washington to take on the economic impact resulting from COVID-19, many countries have seen their currencies rise as ample funds in the U.S. sent the American unit lower.

"Taiwan is a small and open economy, making itself no exception to U.S. influences," Yang said. "How to stabilize the local forex market has become a challenge at a time of U.S. quantitative easing."

Yang's comments came after the U.S. Treasury Department released on Wednesday the semiannual Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners. The report included Taiwan on a list of economies that the U.S. will monitor for currency manipulation. It was the first time Taiwan was included in the watch list since 2017.    [FULL  STORY]

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