Taiwan’s central bank governor, Yang Chin-long, has stated that the bank will intervene in the foreign exchange market to maintain financial stability if there are significant fluctuations. The value of the Taiwan dollar has decreased by over 5% against the US dollar this year due to slowing global demand for technology products. Yang emphasized that intervention is necessary to protect financial stability. The US Treasury Department has been monitoring Taiwan’s foreign exchange and economic policies since June, but Yang stated that they do not object to Taiwan intervening to prevent further depreciation of the currency. The central bank has previously stated its commitment to intervene as needed, and recent data showed that it sold a net $880 million in the first half of the year. Yang also mentioned that Taiwan’s stock market has experienced net foreign capital outflows of over $10 billion this year but assured that the stocks remain stable, and foreign capital outflows are not expected to continue indefinitely. Taiwan’s benchmark index closed down 1.1% on Thursday, reaching a four-month low, but is still up 15% for the year.
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