Central Bank: Exchange Rate Stability Can Ease Imported Inflation, Export Competitiveness Not Primary Concern
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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- 📰 Published: April 13, 2026 at 12:11
- 🔍 Collected: April 13, 2026 at 12:51 (39 min after Published)
- 🤖 AI Analyzed: April 13, 2026 at 13:02 (10 min after Collected)
CENTRAL NEWS AGENCY
(Central News Agency, Taipei, 13th, Reporter Pan Tzu-ning) With the escalating conflict in the Middle East and surging international energy prices, concerns about imported inflation are rising. Central Bank Deputy Governor Yen Tsung-ta stated today that the Central Bank's recent adjustments in the foreign exchange market prioritize the impact on prices rather than export competitiveness, and stable exchange rates help mitigate imported inflationary pressures.
The Finance Committee of the Legislative Yuan today invited relevant ministries and agencies to present specialized reports on 'the mid-to-long term impact and response to the Middle East conflict on energy, prices, livelihood, and medical supplies, and the implementation of the special budget for strengthening economic, social, and livelihood national security resilience in response to international situations.'
The Central Bank's report pointed out that the Middle East conflict has pushed up international raw material prices, including crude oil, leading to an increase in domestic import prices. However, imported inflationary pressures are still controllable.
DPP Legislator Kuo Kuo-wen noted that the New Taiwan Dollar is facing depreciation pressure, which could lead to imported inflation. He asked whether the Central Bank would adjust its approach to allow foreign capital selling Taiwanese stocks not to rush out immediately, thereby avoiding exacerbating depreciation pressure.
Yen Tsung-ta stated that this approach has difficulties because foreign capital has free liquidity and cannot be unilaterally restricted. Furthermore, the Central Bank's principle is that if foreign capital does not immediately repatriate funds after selling stocks, it must remain in the stock market.
Yen Tsung-ta reiterated that the Central Bank's consideration for exchange rate stability has never primarily focused on export competitiveness; the Central Bank places more importance on the impact on prices.
The Central Bank's report also explicitly stated that it will continue to mitigate the impact of rising international raw material prices on domestic prices through exchange rate stability; in addition, it will closely monitor changes in the Middle East situation, collect economic and financial data, and adopt appropriate monetary policy responses. (Edited by Pan Yi-ching) 1150413
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(Central News Agency, Taipei, 13th, Reporter Pan Tzu-ning) With the escalating conflict in the Middle East and surging international energy prices, concerns about imported inflation are rising. Central Bank Deputy Governor Yen Tsung-ta stated today that the Central Bank's recent adjustments in the foreign exchange market prioritize the impact on prices rather than export competitiveness, and stable exchange rates help mitigate imported inflationary pressures.
The Finance Committee of the Legislative Yuan today invited relevant ministries and agencies to present specialized reports on 'the mid-to-long term impact and response to the Middle East conflict on energy, prices, livelihood, and medical supplies, and the implementation of the special budget for strengthening economic, social, and livelihood national security resilience in response to international situations.'
The Central Bank's report pointed out that the Middle East conflict has pushed up international raw material prices, including crude oil, leading to an increase in domestic import prices. However, imported inflationary pressures are still controllable.
DPP Legislator Kuo Kuo-wen noted that the New Taiwan Dollar is facing depreciation pressure, which could lead to imported inflation. He asked whether the Central Bank would adjust its approach to allow foreign capital selling Taiwanese stocks not to rush out immediately, thereby avoiding exacerbating depreciation pressure.
Yen Tsung-ta stated that this approach has difficulties because foreign capital has free liquidity and cannot be unilaterally restricted. Furthermore, the Central Bank's principle is that if foreign capital does not immediately repatriate funds after selling stocks, it must remain in the stock market.
Yen Tsung-ta reiterated that the Central Bank's consideration for exchange rate stability has never primarily focused on export competitiveness; the Central Bank places more importance on the impact on prices.
The Central Bank's report also explicitly stated that it will continue to mitigate the impact of rising international raw material prices on domestic prices through exchange rate stability; in addition, it will closely monitor changes in the Middle East situation, collect economic and financial data, and adopt appropriate monetary policy responses. (Edited by Pan Yi-ching) 1150413
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All text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and used without authorization.