The US Treasury Department has added Taiwan to the list of countries that use foreign exchange market interventions to weaken their currency and boost domestic goods in the global market. The Americans rank the island alongside countries such as Vietnam or Switzerland.
On Sunday, the Central Bank of Taiwan objected to the inclusion of the country on the list of the US Treasury Department, which includes countries that use interventions against their own currency to improve their export position. Taiwan has reportedly never used the exchange rate of its currency to gain an unfair trading advantage in the global market, Reuters reported, referring to Taiwan’s central bank.
The Central Bank of Taiwan communicated its position to the US Treasury Department and also rejected the way in which the Americans came to their conclusions. “Due to the ongoing trade disputes between the US and China, we consider the standards for assessing currency exchange rate manipulation to be incorrect indicators for assessing the economic, trade and exchange rate policies of the US trading partners,” the Central Bank of Taiwan said.
The US Treasury Department appears to have responded to the fact that Taiwanese exports, especially of technological goods, grew tremendously during the pandemic. As a result, Taiwan has increased its trade surplus with the United States.