Asia | Emerging Markets | FX | Monetary Policy & Inflation
The Taiwan dollar (TWD) has recently started to show some strength – it was up almost 1% against the dollar in the second half of July before giving back some gains in recent days. A weak GDP print likely caused some of the weakness. However, the focus could now shift to Taiwan likely being added to the US Treasury Monitor List of major trading partners that merit close attention to their currency practices and macroeconomic policies. Given recent CBC moderation of TWD strengthening, this may disincentivise continued FX intervention, as was the case after Taiwan was added to the list in 2016. As such, inclusion on the list, which could be released in coming weeks, portends continued TWD appreciation.
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