The NTD has recently appreciated significantly against the US dollar, dropping from 33.2 at the beginning of April to today’s 31.2, with an appreciation of 5% over the month, and an increase of seven jiao just today. The Taiwan Central Bank rarely issued a press release stating that recent media reports claiming the US requested the NTD to appreciate and mentioning specific exchange rates are not true.
The NTD has risen above 32; the Central Bank: The US's request for the NTD to appreciate is not true.
The Taiwan Central Bank has issued the following statement regarding the appreciation of the NTD:
1. From April 9 to the present, the US has conducted trade negotiations with Japan, South Korea, and other countries. Some media mentioned the Mar-a-Lago Accord and speculated that during tariff negotiations with major trading partners, the US might request the currencies of those partners to appreciate.
2. It is understood that recently, US Treasury Secretary Bessent and Japan's Finance Minister Katsunobu Kato engaged in discussions on exchange rate issues. Secretary Bessent stated that the US-Japan trade negotiations would not mention specific exchange rate targets, but hopes Japan will respect the G7 agreement and refrain from competitive devaluation of currency to gain unfair trade advantages. Subsequently, Japanese officials also emphasized that the US did not discuss specific exchange rate target levels, and both sides confirmed that exchange rates should be determined by the market, as excessive exchange rate fluctuations would harm the economy.
3. Since 2021, the US Treasury's exchange rate policy reports have indicated that no major trading partner has engaged in competitive devaluation to gain an unfair competitive advantage, and therefore no country has been accused of currency manipulation.
4. The US Treasury did not request the NTD to appreciate. Domestic media reports that the US requested the NTD to appreciate do not align with the facts. Our bank maintains smooth communication channels with the US Treasury, and both parties will continue to exchange views on macroeconomic and exchange rate policy issues based on good interaction in the future.
5. For a long time, the New Taiwan Dollar (NTD) has performed relatively stable against the US Dollar compared to other major currencies. Our bank will continue to strive to maintain the dynamic stability of the NTD and closely monitor the dynamics of the international financial markets.
The USD briefly fell below 140 against the Japanese yen and has risen again to 145.
US Treasury Secretary Bessent stated on April 26 that he had very constructive talks with Japan's Finance Minister Katsunobu Kato and acknowledged discussions regarding exchange rate issues.
Very constructive talks with Minister of Finance Katsunobu Kato of Japan.
I was pleased to follow up on previous reciprocal trade discussions between the United States and Japan, as well as to discuss matters pertaining to exchange rates.
Looking forward to our next… pic.twitter.com/9B8Q5Ny7Ri
— Treasury Secretary Scott Bessent (@SecScottBessent) April 26, 2025
However, from the market's response, the USDJPY briefly fell below 140 at the end of April and has recently gradually risen back above 145.
The Bank of Japan maintained its policy settings unchanged on Thursday (May 1) and postponed the timeline for achieving inflation targets, citing the trade war as a risk factor. According to a Bloomberg survey, observers of the Bank of Japan predict that the likelihood of interest rate hikes will be delayed, with the expectation of a September rate hike dropping from 89% in the last survey to 45%.
Is the selling of dollars triggering a wave of selling? Is the Central Bank optimistic about it?
However, Japan being not pressured by the US does not mean that Taiwan is not.
The tariff war initiated by Trump has led investors to retreat from US assets, causing investors to sell dollars, triggering a wave of selling. The Taiwan Central Bank, which usually does not prevent depreciation but does not prevent appreciation, has not intervened this time and seems somewhat optimistic, which may also be the main reason for the significant appreciation of the NTD!
The NTD surged more than seven jiao before noon today, with an increase of 2.58%, a rare occurrence in history.
Foreign exchange traders also indicated that there are no dollar buy orders below, and this wave of NTD appreciation may have no limits.
This article discusses the rapid appreciation of the NTD by seven jiao. The Taiwan Central Bank clarifies: The US did not pressure the NTD to appreciate, first appearing in Chain News ABMedia.
