Taiwan Central Bank Eases FX Selling Limits for Exporters, TWD Rebounds
nashnova research
Taiwan's central bank told banks on Monday that exporters may sell dollars without daily caps, and the Taiwan dollar bounced off its lows — but whether this intervention can reverse a selloff driven by equity outflows remains an open question.
What exactly did the central bank do?
Taiwan's central bank called at least four banks Monday morning, telling them exporters would no longer face a daily cap on selling U.S. dollars.
The previous rule: exporters could sell at most $10 million per day. This means → the flow of export-earned dollars into the market was throttled, and that throttle has now been removed.
In plain terms = exporters who earn dollars selling chips, electronics, or other goods abroad can now convert as much as they want into Taiwan dollars on any given day — pushing more dollar supply into the market and supporting the local currency.
How far had the Taiwan dollar fallen?
The Taiwan dollar dropped roughly 2% last month, hitting its weakest level since April 2025 and ranking among Asia's worst-performing currencies.
The core driver: sustained, large-scale equity outflows — foreign investors sold Taiwan stocks and converted the proceeds into U.S. dollars.
This reflects a fundamental pressure, not a technical blip: real capital is leaving the Taiwan market.
How did markets react to the news?
The Taiwan dollar rebounded from its intraday low. The sharper move came in the one-month NDF — a non-deliverable forward contract used to bet on exchange-rate direction — which rallied as much as 0.4% to 32.537 per dollar after earlier trading lower.
This means → traders, at least in the short term, took the central bank's signal seriously enough to bet against further depreciation.
But the central bank did not say how long the measure would last, leaving the durability of the rebound in question.
What do analysts make of it?
Eddie Cheung, senior emerging-markets strategist at Crédit Agricole in Hong Kong, said the move signals that "the authorities' tolerance for Taiwan-dollar weakness may be declining."
In plain terms = the central bank is telling the market: we will not sit by and watch the currency keep sliding.
The key variable, however, has not changed: whether the Taiwan dollar can truly stabilize depends on whether equity outflow pressure eases in substance — and that is not something a selling-cap tweak can guarantee.
市场有风险，内容仅供研究参考，不构成投资建议。