Bloomberg: FSC Reportedly Considering Approval for Listed Companies to Issue Dividends in USD
Bloomberg News reports that Taiwan's Financial Supervisory Commission (FSC) is reportedly considering approving listed companies to issue dividends in USD. Once implemented, this would reduce dividend payment currency exchange operations for listed companies and is expected to lower short-term fluctuations in the New Taiwan Dollar.
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- 📰 Published: April 20, 2026 at 18:21
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Bloomberg News reports that Taiwan's Financial Supervisory Commission (FSC) is reportedly considering approving listed companies to issue dividends in USD. Once implemented, this would reduce dividend payment currency exchange operations for listed companies and is expected to lower short-term fluctuations in the New Taiwan Dollar.
Sources familiar with the matter revealed that the FSC is evaluating implementation details and the overall framework, with the specific timeline for implementation remaining unclear. One source stated that the proposal was made by some Taiwanese companies that hold significant USD assets and have a high proportion of foreign investor holdings.
This new measure is unlikely to be implemented before the peak dividend season in July this year, as adjusting relevant regulations and supporting measures will require time. The FSC declined to comment on Bloomberg's request for information.
According to reports, the cash dividends announced by Taiwanese listed and OTC companies for the 2025 fiscal year amount to NT$2.2 trillion. TSMC is expected to distribute the largest cash dividends, currently NT$155.6 billion per quarter. FSC data shows that foreign investors held approximately 45% of the total market value of Taiwanese stocks last year.
Under current regulations, Taiwanese companies can only issue dividends in NTD. Therefore, companies whose primary transactions are in USD must convert USD to NTD when distributing dividends. Foreign investors then need to immediately convert their NTD dividends back to USD for repatriation. This not only incurs currency exchange costs for companies but may also cause short-term fluctuations in the local foreign exchange market. (Translator: Hong Qiyuan) 1150420
Sources familiar with the matter revealed that the FSC is evaluating implementation details and the overall framework, with the specific timeline for implementation remaining unclear. One source stated that the proposal was made by some Taiwanese companies that hold significant USD assets and have a high proportion of foreign investor holdings.
This new measure is unlikely to be implemented before the peak dividend season in July this year, as adjusting relevant regulations and supporting measures will require time. The FSC declined to comment on Bloomberg's request for information.
According to reports, the cash dividends announced by Taiwanese listed and OTC companies for the 2025 fiscal year amount to NT$2.2 trillion. TSMC is expected to distribute the largest cash dividends, currently NT$155.6 billion per quarter. FSC data shows that foreign investors held approximately 45% of the total market value of Taiwanese stocks last year.
Under current regulations, Taiwanese companies can only issue dividends in NTD. Therefore, companies whose primary transactions are in USD must convert USD to NTD when distributing dividends. Foreign investors then need to immediately convert their NTD dividends back to USD for repatriation. This not only incurs currency exchange costs for companies but may also cause short-term fluctuations in the local foreign exchange market. (Translator: Hong Qiyuan) 1150420