TAIPEI (Reuters) – Taiwan’s central bank said on Monday that it will intervene if necessary to ensure the stability of the Taiwan dollar exchange rate and that it has “sufficient ability” to deal with fluctuations, following steep falls in global stock markets.
Financial markets around the world have been impacted by fallout from U.S. President Donald Trump’s decision last week to impose sweeping import tariffs.
Taiwan’s benchmark stock index plummeted almost 10% on Monday, though the Taiwan dollar gained slightly against the greenback.
Taiwan’s central bank said in a statement that it had prepared sufficient liquidity for foreign currency.
During previous crises like the COVID pandemic, the central bank said that it stabilised the market through “flexible and effective monetary policies and foreign exchange management” allowing Taiwan to safely weather the turmoil.
Speaking to reporters, Eugene Tsai, head of the bank’s foreign exchange department, said that on Monday the bank had offered some liquidity in the foreign exchange market, and there were no “panicked” outflows.
(Reporting by Liang-sa Loh and Faith Hung; Writing by Ben Blanchard; Editing by Toby Chopra)
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