TAIPEI (TVBS News) — A recent surge in the New Taiwan dollar (新台幣) reflects growing foreign confidence in Taiwan’s economy, sparking concerns among exporters. The currency’s strength has reached significant levels, with the current exchange rate at approximately NT$29.988 per U.S. dollar as of June 2.
Currency appreciation has prompted the logistics industry to alter shipping routes, according to Aaron Yu (余為), a market manager at a freight forwarding company. He notes that the stronger New Taiwan dollar compresses the role of Free On Board (FOB) trade terms. This shift makes the Association of Southeast Asian Nations (ASEAN) a preferred shipping destination for Taiwanese companies.
Peng Jin-lung (彭金隆), chairman of the Financial Supervisory Committee (FSC, 金管會), warns that every 1-unit appreciation of the New Taiwan dollar against the U.S. dollar could cost the life insurance industry NT$200 billion in foreign exchange losses. The vulnerability stems from NT$23 trillion of the sector’s NT$37 trillion in total funds being held overseas. About 60 percent of the remaining hedged funds remain exposed to currency fluctuations.
Wang Jiann-chyuan (王健全), vice president of the Chung-Hua Institution for Economic Research (CIER, 中經院), analyzes that a 1 percent appreciation of the New Taiwan dollar could reduce industrial profits by 0.3 to 0.5 percent. Foreign exchange expert Li Chi-chan (李其展) emphasizes that gradual appreciation benefits depend heavily on foreign investment in Taiwan stocks.
While the more substantial currency benefits import-oriented businesses, midstream trade clients must adapt, notes Chen Kun-tse (陳昆澤), a food manufacturing company manager. Wang also highlights short-term benefits for stock and real estate markets while cautioning about risks if economic fundamentals deteriorate. The dual nature of the New Taiwan dollar’s rise requires strategic business adjustments and careful investor timing.
Reporter Amy Hsin-Hsiang Chen
Release time：2025/06/02 17:47
Last update time：2025/06/02 17:47