CBRC To Alter FX Market Rules To Curb Speculation

Spot USD/TWD has moved lower in early trade, the rate dropping just underneath yesterday's low to touch 27.932, the strongest levels for TWD since 1997. The pair spiked at the close again yesterday to finish at 28.15.

• After market yesterday Taiwan announced intentions to tighten regulations around the declaration of FX transactions. Taiwan's central bank will be able to order all firms to seek approval for forex transactions, compared to current rules which say only companies that buy or sell more than $50m of forex on aggregate per year must seek central bank's approval. The measures are aimed at maintaining stability in forex market and preventing speculation.
• Today there have been reports that Taiwan could start its COVID-19 vaccination programme in June. Apple Daily reports that government has had some difficulty obtaining the vaccine, which has pushed the start date back from March.
• NDF's have declined as TWD continues to push below the 28.00 handle, 1-month NDF's last at 27.864 after hitting lows of 27.832 late yesterday.