1. One of the local daily newspapers published an article today with the heading “Central Bank’s New Rule Targets NDF.”
“In addition to asking local banks not to place orders for currency trades just before the market closes, the central bank has extended the rule to block orders at 11:00 a.m. in a move that visibly targets offshore NDF trading,” the article reported. The content of this news report is groundless and this press statement has been issued to set the record straight.

2. The press statement issued by the Central Bank of the Republic of China (Taiwan) on October 7, 2010 includes some reference material aimed at enhancing public understanding that the so called “Perng Directives” reported by the press are non-existent. The reference material consists of:
(1) comments made by Professor Joseph Stiglitz, a Nobel Prize winner in economics, regarding US monetary policy and its effects on foreign exchange markets around the world,
(2) a brief outline of Brazil’s tax on foreign investment into local government bonds, and
(3) a chart showing that in the first 9 months of 2010, the annualized rate of import price increase denominated in NT dollars is 4.6% lower than the rate of import price increase denominated in US dollars, a reflection of the magnitude of the NT dollar’s appreciation against the US dollar during the same period.