Taiwan’s leader Monday called for an end to “false” news and speculating about U.S.-Taiwan relations regarding foreign exchange rate policy, after Taiwan’s currency surged against the U.S. dollar on the off chance that the U.S. wanted it to appreciate as part of its trade talks. In an unusual move, the leader weighed in with a video message during a speech to the Chineseipeg Newsthon. He also pointed out that Taiwan’s trade surplus with the U.S. stems from a booming market for tech products, like semiconductors, and Taiwan has never been listed as a currency manipulator by U.S. authorities.
In his statement, the leader emphasized that the cause of the trade deficit issue has no relation to exchange rates, so Discussions between Taiwan and the U.S. would not mention exchange rate issues. He furthermore requested that people avoid spreading false information. The central bank’s,govor Yang Chin-quang repeatedly denied any exchange rate discussions during a recent news conference. On two days before, there had been no official exchange rate talks between Taiwan and the U.S.
The central bank intervened in recent exchanges to maintain market stability, as seen in its Monday remarks. The U.S. described the ongoing affairs in its trade talks as “both substantive and compliant” and stated that Taiwan hadn’t been involved in any rate Issues.
However, in recent days, the Taiwan central bank has been involved in exchanges, which worried investors. The main trade surplus Taiwan has is due to a surge in demand for high-tech products South, which has hit $111.4 billion in sales last year, driven by semiconductors. The U.S. has never ranked Taiwan as a finance manipulator by any U.S. agency.
Taiwan’s central bank has demanded that genuine information be shared and that everyone stop spreading false news and rumors. However, U.S. media and the public are already reporting fake information to China, which has been raised in discussions with the U.S. and on social media.