Skip to content

Taiwan Floats FX Controls, Short-Sale Ban If Outflows Worsen

  • Island’s currency hovers near weakest level since 2017
  • Global funds sold more than $43 billion Taiwan shares in 2022

Taiwan officials raised the prospect of foreign-exchange controls and a ban on stock short sales if capital outflows worsen significantly, underscoring growing concern among global policy makers over the destabilizing effects of tighter monetary policy.

Taiwan will closely monitor foreign outflows before considering control measures in case of significant foreign outflows due to US rate hikes or cross-strait tensions, central bank governor Yang Chin-long said in response to a question from lawmakers. Outflows are so far under control, he said. The government is cautiously considering a ban on short-selling, Taiwan’s Financial Supervisory Commission Chairperson Huang Tien-mu said.