Taiwan's central bank said on Sunday it had banned Deutsche Bank from trading Taiwan dollar deliverable and non-deliverable forwards and suspended it for two years from trading forex derivatives as part of a crackdown on speculation.
Taiwan's central bank has sent inspectors to domestic banks to investigate whether exporters are speculating in foreign currency as the Taiwan dollar soars against the U.S. dollar, three sources with direct knowledge of the matter told Reuters.
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TAIPEI, Feb 5 (Reuters) - Taiwan’s central bank on Friday told four foreign banks they would be suspended from trading in the deliverable forwards foreign exchange market for their role in helping grains firms speculate against the Taiwan dollar, three sources with direct knowledge of the matter said.
The Taiwan dollar is at a more than 23-year-high against the greenback as the island’s trade-dependent economy booms on the back of global demand for its tech products.
The central bank has tried using “moral persuasion” to slow the currency surge, but has been particularly concerned about the grains case, and said last month it would punish four banks, though did not name them.
Taiwan's central bank has sent inspectors to domestic banks to investigate whether exporters are speculating in foreign currency as the Taiwan dollar soars against the U.S. dollar, three sources with direct knowledge of the matter told Reuters.
Taiwan's central bank began meeting this week with major exporters to ask them to spread out sales of foreign currency, four sources with direct knowledge of the matter told Reuters, as it continues to try to rein in the soaring local currency.