Foreign Exchange Management
The NT dollar exchange rate is determined by market forces. However, when seasonal or irregular factors disrupt the market, the CBC will step in to maintain an orderly foreign exchange market. The CBC has continued to promote financial liberalization and internationalization. The management of capital movements is market based. In general, capital can flow freely in and out of Taiwan. The CBC’s management philosophy of its foreign exchange reserves centers around liquidity, security, and profitability. The foreign exchange reserves have also been used to promoting economic development and industrial upgrading.