Taiwan to release quarterly forex intervention reports

台灣將發布季度外匯干預報告

TAIPEI (Taiwan News) — The Central Bank of Taiwan will begin releasing foreign exchange intervention data on a quarterly basis as part of an agreement with the US to increase transparency, Nikkei Asia reported Wednesday.

The move marks a shift from the previous practice of releasing the data twice a year. The Central Bank will start with its July–September 2025 report, officials said.

The Central Bank and the US Treasury reached an agreement on exchange rate policy in November, outlining expectations in a joint statement. The disclosure change is intended to increase transparency and align Taiwan with international reporting standards.

By publishing intervention data more frequently, the Central Bank aims to curb speculation in the currency market. Officials believe clearer signaling will reduce excessive betting on New Taiwan dollar movements.

The issue drew attention earlier this year when US and Taiwanese officials met in Washington in early May to discuss Trump's tariffs. The New Taiwan dollar surged during those talks and later hit a roughly three-year high of around NT$28 (US$0.89) to the US dollar in July.

Market speculation at the time centered on the belief that Washington and Taipei had reached a tacit agreement favoring a stronger currency. That perception added fuel to appreciation pressure, analysts said.

Until this year, Taiwan’s Legislative Yuan received foreign exchange intervention reports only in the spring and fall. Critics argued the limited disclosures left room for speculation, contributing to sharp currency swings.

The US Treasury and Federal Reserve publish foreign exchange operations on a quarterly basis, as does the European Central Bank. Taiwan’s shift brings its reporting cycle closer to those major monetary authorities.

Currency strength matters deeply for Taiwan’s export-driven economy, where shipments abroad account for about 60% of gross domestic product. That compares with less than 20% in Japan and roughly 40% in South Korea.

TSMC Chair and CEO C.C. Wei (魏哲家) has said the company’s operating margin falls by 0.4 percentage points for every 1% appreciation in the Taiwan dollar. The comment highlights how exchange rates directly affect corporate earnings.

Washington has pressed Taipei to address concerns over currency weakness as part of broader trade talks. Taiwan recorded a record NT$2.04 trillion trade surplus with the US in 2024, driven largely by semiconductor and technology exports.

In the November joint statement, the two sides said any currency intervention should be limited to countering excessive volatility or disorderly movements. “Any macroprudential or capital flow measures will not target exchange rates for competitive purposes,” the statement said.

Despite the agreement, the US continues to place Taiwan on its currency manipulation monitoring list, adding pressure to ongoing tariff negotiations. The Trump administration has imposed a 20% tariff on Taiwan, higher than the 15% rates applied to Japan and South Korea, while pressing Taipei for greater investment commitments in the US.