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Taiwan Central Bank Governor Says He Won’t Impose FX Controls

  • Central bank is capable of coping with capital flows: Yang
  • Flood ‘needs to be channeled,’ Yang tells lawmakers Thursday
Yang Chin-long
Yang Chin-longPhotographer: Billy H.C. Kwok/Bloomberg

Taiwan’s central bank won’t impose foreign-exchange controls, Governor Yang Chin-long said Thursday as he attempted to clarify earlier remarks about how aggressive the monetary authority might become to ensure stability in financial markets.

The central bank is capable of coping with capital outflows, Yang told lawmakers, acknowledging that foreign outflows are higher in 2022 than in previous years, amounting to more than $40 billion. The Taiwan dollar dropped this week to the weakest level since 2017, and pressure is rising on the currency as global funds sold tens of billions of dollars worth of Taiwan stocks this year.