Taiwanese President Tsai Ing-wen addressed the recent changes in the market and the appreciation of the New Taiwan Dollar through a video message to the nation today (5th). She urged everyone to have confidence in themselves and in Taiwan.
In Taipei’s foreign exchange market, the New Taiwan Dollar against the US dollar closed at 31.064, rising by 9.53 cents, with a trading volume of 2.248 billion US dollars.
President Tsai Ing-wen’s video message stated, “Good evening to all compatriots and friends who care about Taiwan’s economic development.” From last week until today, many have been concerned about the fluctuations in Taiwan’s exchange rate market and the appreciation of the New Taiwan Dollar. She outlined five points to explain the situation to everyone.
Tsai Ing-wen mentioned that the recent appreciation of the New Taiwan Dollar is mainly due to psychological expectations in the foreign exchange market. The first reason that formed these market expectations is due to Taiwan’s economic growth rate for the whole of last year reaching 4.59%, the best performance in three years, with an estimated economic growth rate for the first quarter of this year reaching 5.37%.
Even in the face of the new policy impact of US President Trump’s “equal tariffs,” Taiwan’s economic performance remains strong. Compared to other Asian economies such as Hong Kong, South Korea, and Singapore, Taiwan has shown better growth prospects, with the IMF revising Taiwan’s economic growth forecast from 2.7% to 2.9%, surpassing Japan’s 0.6%.
President Tsai emphasized that Taiwan’s economic performance is the result of the efforts of the entire Taiwanese people, demonstrating the resilience of Taiwan’s economic structure. She urged everyone to have confidence in themselves and in Taiwan.
The second reason for the appreciation of the New Taiwan Dollar is the recent influx of foreign capital buying Taiwanese stocks. Since the US proposed equal tariffs on April 2, global stock markets have been greatly impacted, including Taiwan. Despite fluctuations, the Taiwan Stock Market has gradually recovered from falling below 18,000 points to over 20,000 points. The increased foreign investment in Taiwanese stocks has raised expectations for the appreciation of the New Taiwan Dollar, showing confidence in Taiwan’s industries even amid challenges from US tariff policies.
President Tsai expressed concern over the circulation of misinformation in affecting market expectations regarding the exchange rate. She stressed the importance of national unity and not sacrificing the country’s interests for political gains.
Taiwan’s central bank held a press conference this afternoon, led by Yang Chin-lung, to clarify exchange rate matters and made two appeals: for market commentators not to speculate excessively and disrupt market order, and for businesses not to follow exaggerated or unsubstantiated market analyses that could lead to irrational expectations and harm their own interests.
The Office of Trade Negotiations of the Executive Yuan released a press statement today clarifying that the tariff negotiations between Taiwan and the US did not touch upon the exchange rate issue. Taiwan’s export structure to the US, especially in products like AI, ICT, semiconductors, and related goods, has developed over years of international trade cooperation, indicating mutually beneficial trade relations between Taiwan and the US.
Although Taiwan has been included on the US watch list due to trade imbalances, it has never been labeled as a currency manipulator. The root cause of the trade deficit between Taiwan and the US is unrelated to the exchange rate, hence the issue was not part of the negotiations. President Tsai urged individuals to stop spreading false information intentionally.
President Tsai emphasized that during critical moments in the Taiwan-US trade negotiations, the governing team will adhere to the principles of “ensuring national interests,” “maintaining industrial development,” and “never sacrificing any industry” in a measured and steady manner.
She emphasized, “Taiwan’s economy is the result of generations of hard work, evolving from small family businesses to global manufacturing giants. Regardless of political affiliations, it is our collective responsibility to safeguard it.”
President Tsai asked all friends and supporters to share the information she provided, “Spread the correct message to your family and friends. Let’s face international economic challenges with rationality and unity.”