-- Taiwan is considering allowing listed companies to pay dividends in U.S. dollars instead of converting them into local currency, Bloomberg News reported Monday, citing people familiar with the development.
The proposed change, being reviewed by the Financial Supervisory Commission, aims to cut conversion costs and streamline capital flows for firms with large foreign shareholder bases, the report said.
Under current rules, companies must convert U.S. dollar earnings into Taiwan dollars for payouts, which foreign investors then reconvert when repatriating funds, the report said.
A rollout is unlikely before the main dividend season in July, and no formal timeline has been set, the news outlet reported.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)