WASHINGTON\/TAIPEI \u2014 The U.S. Treasury and Taiwan\u2019s central bank on Friday reaffirmed their commitment to avoid manipulating their currencies for unfair trade advantage, while agreeing to deepen cooperation on macroeconomic and foreign-exchange policy matters. In a joint statement, both sides underscored that any intervention in currency markets should only be employed to counter \u201cexcess volatility and disorderly movements,\u201d not to skew exchange rates for competitive gain.
The pledge comes amid persistent scrutiny: Taiwan remains on the U.S. Treasury\u2019s monitoring list for foreign-exchange practices, though Treasury\u2019s most recent semi-annual currency report found \u201cno major trading partner\u201d engaging in outright manipulation.
In a separate statement, Taiwan\u2019s central bank rebuffed earlier speculation that Washington had urged the island to let its currency appreciate. The central bank said unequivocally, \u201cthe U.S. Treasury Department never requested an appreciation of the Taiwan dollar.\u201d
Both agencies emphasized that foreign-exchange interventions must be transparent and limited in scope. They committed to publicly disclosing intervention operations quarterly, with a one-quarter lag, as well as reporting their foreign-exchange reserves and forward-position data in line with International Monetary Fund templates.
The Treasury and the central bank also agreed on a broader principle: public investment vehicles\u00a0 such as pension funds\u00a0 should not use their capital flows to target exchange rates. Instead, these tools should be used for \u201crisk-adjusted return and diversification purposes.\u201d
Taiwan\u2019s central bank further committed to enhancing its transparency. Beginning in 2026, it will shift from semi-annual to quarterly disclosure of its foreign-exchange intervention activities.
In defending its approach to intervention, Taiwan\u2019s central bank said that actions will be bi-directional aimed at moderating both rapid appreciation and depreciation. The bank said this aligns with its long-standing foreign-exchange policy principles.
Officials from both sides described the renewed vows as part of a \u201cpositive working relationship,\u201d with ongoing dialogue expected on macroeconomic and currency-rate policies.
Taiwan also clarified that the agreement is unrelated to its ongoing tariff negotiations with the U.S. The central bank noted that it is not part of the cabinet-level Taiwan\u2013U.S. Economic and Trade Working Group.
Despite the public affirmations, markets responded. According to Bloomberg, forward markets for the Taiwan dollar moved sharply as investors digested the new commitment from the central bank.
Analysts say the agreement underscores a delicate balancing act: Taiwan must manage currency volatility without triggering U.S. accusations of manipulation, while Washington seeks assurances that Taipei\u2019s capital flows and interventions aren\u2019t being used for trade leverage.
Whether the renewed transparency and restrictions will be enough to reassure investors and regulators remains to be seen\u00a0 but Friday\u2019s statement marks a significant moment, reaffirming both sides\u2019 interest in stability over competitive currency tactics.<\/p>\n","protected":false},"excerpt":{"rendered":"
WASHINGTON\/TAIPEI \u2014 The U.S. Treasury and Taiwan\u2019s central bank on Friday reaffirmed their commitment to avoid manipulating their currencies for unfair trade advantage, while agreeing to deepen cooperation on macroeconomic and foreign-exchange policy matters. In a joint statement, both sides underscored that any intervention in currency markets should only be employed to counter \u201cexcess volatility […]<\/p>\n","protected":false},"author":2,"featured_media":24320,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[2,4,478,5],"tags":[1480,1479],"class_list":["post-24321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-featured","category-financial","category-international","tag-1480","tag-united-states-department-of-the-treasury-logo-and-u-s-flag-are-seen-in-this-illustration-taken-april-23"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.funminews.com\/wp-content\/uploads\/2025\/11\/images-4.jpeg?fit=679%2C452&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/24321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/comments?post=24321"}],"version-history":[{"count":1,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/24321\/revisions"}],"predecessor-version":[{"id":24322,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/posts\/24321\/revisions\/24322"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/media\/24320"}],"wp:attachment":[{"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/media?parent=24321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/categories?post=24321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.funminews.com\/index.php\/wp-json\/wp\/v2\/tags?post=24321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}