One of the local newspapers reported yesterday “the central bank says that the NT dollar is undervalued and exporters should take precautionary measures.” This report is incorrect and the following press statement has been issued to clarify our position.

1. Taiwan’s central bank did not comment on the NT dollar exchange rate as reported in the press.
2. Taiwan’s exchange rate regime is managed float. The NT dollar exchange rate is in principle determined by market forces, but if the foreign exchange market experiences excessive volatility due to seasonal or irregular factors the central bank will step in to maintain order.