Taiwan's central bank prioritizes price stability over export competitiveness when managing foreign exchange intervention, Taiwan News reported Monday, citing central bank's Deputy Governor Yen Tzung-ta.
While addressing reporters, Yen said the central bank's efforts to stabilize the Taiwan dollar can help cushion imported inflation pressures linked to rising global oil prices amid the Iran conflict. He noted that while international commodity prices have increased due to the geopolitical tensions, imported inflation in Taiwan remains manageable.
Lawmakers warned that a weaker Taiwan dollar could raise import costs and asked if limits should be imposed on foreign investors repatriating funds after selling shares. Deputy Governor Yen said such controls would be difficult under Taiwan's open capital system, noting that existing rules already require funds to stay in the market if not immediately withdrawn.
He added that the central bank will continue monitoring developments in the Middle East and global financial conditions, reportedly.
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