What is the main reason the Central Bank of Taiwan focuses on exchange rate stability?

Due to concerns that rising international energy prices caused by the Middle East situation could lead to import inflation, the priority is to suppress the impact on prices.

Does exchange rate stability affect Taiwan's export competitiveness?

The Deputy Governor of the Central Bank, Yan Zongda, stated that the main purpose of exchange rate stability is to control prices, and export competitiveness is not a primary consideration.

What is the Central Bank's stance on foreign capital outflows?

Since foreign capital has free liquidity, it is difficult to restrict outflows individually. The policy indicates that if funds do not immediately leave, they should remain in the stock market.

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Central Bank: Exchange Rate Stability Can Ease Imported Inflation, Export Competitiveness Not Primary Concern

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Taiwan's Central Bank announced it is focusing on exchange rate stability to curb imported inflation caused by surging international energy prices due to the Middle East situation. The Deputy Governor stated that the primary goal of exchange rate stability is to control price impact, not export competitiveness.

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Frequently Asked Questions

Q: What is the main reason the Central Bank of Taiwan focuses on exchange rate stability?: A: Due to concerns that rising international energy prices caused by the Middle East situation could lead to import inflation, the priority is to suppress the impact on prices.
Q: Does exchange rate stability affect Taiwan's export competitiveness?: A: The Deputy Governor of the Central Bank, Yan Zongda, stated that the main purpose of exchange rate stability is to control prices, and export competitiveness is not a primary consideration.
Q: What is the Central Bank's stance on foreign capital outflows?: A: Since foreign capital has free liquidity, it is difficult to restrict outflows individually. The policy indicates that if funds do not immediately leave, they should remain in the stock market.