2023-11-08 05:30:44
The U.S. Treasury Department’s semi-annual report was released and did not list major trading partners as currency manipulators, but Taiwan remained on the watch list.
Gong Mingxin, chairman of the National Development Council, said that this is an expected result because Taiwan’s exports are still exceeding, but the central bank is paying attention. Zhang Jianyi, president of the National Taiwan Institute of Economics, said being placed on the watch list will have little impact.
Taiwan remains on the U.S. exchange rate manipulation watch list. Gong Mingxin, chairman of the National Development Council, said that this is an expected result because Taiwan’s exports are still in excess, but the central bank is paying attention. (Central News Agency file photo)
The U.S. Department of the Treasury today submitted to Congress a semiannual report on the overall economic and foreign exchange policies of the United States’ major trading partners. The report evaluates the policies of the United States’ major trading partners in the four quarters ending in June 2023. These trading partners account for 78% of the United States’ foreign trade in goods and services.
The report pointed out that no major trading partners of the United States were found to be manipulating exchange rates, but it included China, Germany, Malaysia, Singapore, Taiwan and Vietnam on the watch list worthy of attention.
The three review criteria of the U.S. Treasury Department’s exchange rate policy report are that the trade surplus in goods and services with the U.S. exceeds 15 billion U.S. dollars; the ratio of current account surplus to GDP exceeds 3%, or the economy has a huge current account according to the U.S. Treasury Department’s model. gap; and the ratio of net foreign exchange purchases to GDP exceeds 2%, and more than 8 months out of 12 months are net foreign exchange purchases.
In an interview this morning, Gong Mingxin said that it was expected that Taiwan would remain on the exchange rate manipulation watch list, because several indicators in Taiwan are still good, exports have also exceeded, and the central bank is paying close attention.
The media further asked, Taiwan remains on the exchange rate manipulation watch list, is there any way to improve it? Gong Mingxin replied that the more stable the exchange rate, the better. The central bank also regards stabilizing the foreign exchange market and commodity prices as its focus.
The National Taiwan Academy of Economics held a business outlook seminar today. President Zhang Jianyi talked about this issue in an interview. He said that being included in the watch list has little impact, and every country has more or less intervened in the exchange rate; Taiwan’s exchange rate has been in the past two years. The ups and downs are due to the impact of international environmental factors, especially the relevant policies of the U.S. Federal Reserve and the Treasury Department.
Zhang Jianyi pointed out that everyone is talking about the central bank blocking the rise and depreciation, but the rise and fall of the currency will follow the economic situation. In the past few years, the New Taiwan dollar rose from more than 30 yuan to 27 yuan. The main reason was the massive return of hot money and medium and long-term funds, and the return of Taiwanese businessmen. Taiwan Investment also gave a push, and the general trend drove the New Taiwan Dollar in the direction of appreciation. Such a violent rise was difficult to imagine before.
Regarding the continued depreciation of the New Taiwan dollar exchange rate this year, Zhang Jianyi believes that the US dollar should still have some room to rise. In this case, Asian currencies including the New Taiwan dollar may depreciate to varying degrees.
(Editor-in-Chief: Zhuang Qianyu)
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