The Taipei foreign exchange market experienced greater volatility than usual today as misleading reports related to the direction of the NT dollar exchange rate created distortions in the supply of an
PRESS RELEASE May 21th,2001
The Taipei foreign exchange market experienced greater volatility than usual
today as misleading reports related to the direction of the NT dollar exchange
rate created distortions in the supply of and demand for foreign currencies.
The NT dollar exchange rate reflects Taiwan's economic fundamentals and is, in
principle, determined by market forces. The Central Bank of China will
intervene, however, when the market is distorted by seasonal or irregular
factors.
On 31 December 2000, the level of Taiwan's foreign exchange reserves stood at
US$106.7 billion. It has risen steadily since the beginning of this year,
reaching US$111.6 billion by the end of April. During the first three weeks of
May, it has continued to climb, supported by a strong balance of payments
position and excess supply of foreign currencies over demand in the foreign
exchange market.
Financial markets react to news, reports, and rumors all too quickly. The
Central Bank of China would like to urge those who are in a privileged position
to refrain from releasing unsubstantiated news or reports that may impact the
market. We advise foreign currency investors to stay rational.
The Central Bank of China