Pursuits
Yuan Drop Shakes Taiwan Into Tighter Scrutiny of Its Derivatives
- Yuan-tied products impacted by $1.5 billion unrealized losses
- Regulator ``will be able to gather warning signals''
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Taiwan has stepped up its scrutiny of derivatives after the yuan devaluation battered trades tied to the currency.
The island’s regulator is requiring more details to be disclosed as derivatives get ever more complex and entwined between financial institutions, said Jean Chiu, the deputy director general of the Financial Supervisory Commission’s banking bureau. Yuan-linked derivatives have unrealized losses of about NT$50 billion ($1.5 billion) after China’s surprise currency devaluations last month.