On 18 August, the New Taiwan Dollar fell to a six-year low, closing the day at 32.5 TWD per USD. The figure represented a 4.3% depreciation over the same day of the previous month and an 8.2% depreciation over the same day of last year. The currency’s decline in value comes against a backdrop of weak economic data emerging from the country. On 14 August, more complete data released by the the Directorate General of Budget, Accounting and Statistics (DGBAS) confirmed that the economy slowed sharply to a three-year low in the second quarter of 2015. In addition, the depreciation comes against a backdrop of declines in other Asian currencies following China’s surprise devaluation of the yuan, although the TWD’s depreciation has been more moderate than its peers.FocusEconomics Consensus Forecast panellists expect the TWD to end this year at 32.1 per USD. For 2016, the panel projects the TWD to trade at 32.5 per USD.
Taiwan Exchange Rate
TWD falls to a six-year low amid weak economic data
August 21, 2015
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Taiwan Exchange Rate Chart
Note: Daily spot exchange rate of New Taiwan Dollar (TWD) against U.S dollar (USD).
Source: Thomson Reuters
Taiwan Economic News
October 9, 2016
In September, the trade surplus totaled USD 4.4 billion, according to data from the Ministry of Finance.
October 5, 2016
In September, consumer prices increased 0.45% over the previous month, which was a rebound from the 0.03% fall recorded in August.
October 3, 2016
Taiwanese manufacturers registered better business conditions for the fourth consecutive month in September.
September 29, 2016
At its quarterly monetary policy meeting on 29 September, the Central Bank of the Republic of China (Taiwan) decided to leave the discount rate unchanged at 1.375%, which was a decision that markets had expected, although some analysts had foreseen a further reduction to the key policy rate. The Central Bank has cut the main monetary policy rate four times since September 2015 by a total of 50 basis points and this time the authority decided to leave interest rates unchanged “against a back drop of moderate global growth and renewed momentum for the domestic economy, along with a mild inflation outlook for next year.” Regarding global developments and how they affect the Taiwanese economy, the Central Bank stated that the global economy continues to decelerate as a result of slower economic growth in the U.S., a still tepid recovery in the Eurozone economy and sluggish economic activity in Japan.
September 27, 2016
Taiwan’s industrial output increased substantially in August, backed by a base effect but also due to strong growth in semiconductor manufacturers’ output, which benefited from the debut of Apple’s latest iPhone model.