Taiwan Warns of Currency Risks From Stock Outflows, Trump Policy

13 Mar 2025

Riyadh - Maaal

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Taiwan’s central bank spent a record amount of money defending its currency last year and may need to do more, given worsening stock market outflows and escalating trade tensions, Bloomberg reported.

The central bank sold $16.4 billion on a net basis in the foreign exchange market in 2024, according to a report to lawmakers. The dollar sales were a third year in a row and the most since data going back to 2018. Governor Yang Chin-long presented the report to lawmakers on Thursday morning.

“Together with Trump 2.0-induced uncertainties, concentrated and massive short-term foreign capital flows bring challenges to the stability of our foreign exchange market,” the report said.

The Taiwan dollar declined by more than 6% against the greenback in 2024, extending its losing streak to three years. It has fallen another 0.5% this year amid the worst-ever selling streak by foreign investors in its stock market as heavyweight Taiwan Semiconductor Manufacturing Co. (TSM) fell out of favor.