New Taiwan dollar drops to three-year low against the US dollar

New Taiwan dollar drops to three-year low against the US dollar

2022-09-06

The New Taiwan dollar closed at NT$30.746 against the U.S. dollar on Tuesday, depreciating by NT$0.036 from the day before. The central bank said the nation’s currency still fared better against the greenback than other currencies in recent days. It said the Japanese yen had nosedived to a 24-year-low against the U.S. dollar, while the Korean won plunged to a 14-year-low against the U.S. unit. In comparison, the NTD-dollar rate represented a three-year low. The bank added adding that it had launched stabilization mechanisms in July, August and September.

Lee Chun
Chung-Hua Institution for Economic Research
Commodity prices appear to be stabilizing, and there are no factors that would cause them to soar suddenly. If the central bank cooperates with everyone and lets the New Taiwan dollar depreciate — but slowly and stably — then the impact on Taiwan will be limited.

Voice of Yin Nai-ping
National Chengchi University
You have to look at how much foreign exchange reserves each country has, and what their economies can tolerate. A global financial recession may be slowly building up, so everyone better strap in and get ready — it’s all about preparation.

The researcher said he believes that with regional currencies depreciating against the dollar, more inflation is inevitable. However, with the New Taiwan dollar faring better overall than other currencies, the impact on Taiwan will likely not be as great. He warned that nevertheless, precautionary measures should be taken in advance.

亞幣競貶潮台幣週二30.746元作收貶值3.6分

2022-09-06

新台幣兌美元週二收30.746元、貶值3.6分，續創近3年新低。央行外匯局長喊話，比起其他非美貨幣，新台幣匯率不算弱勢，韓元兌美元來到14年新低、日圓創24年新低，新台幣只來到近3年新低點。且央行7、8、9月都有進場調節，維持市場秩序，並沒有放生新台幣匯率的問題。

[[中經院WTO及RTA資副執行長李淳]]
“大宗物資價格看起來是趨穩的，沒看到太多會讓它突然飆升的變數存在。另一方面如果央行跟大家合作，讓台幣雖然是看貶，但是是穩定、趨緩的貶值，整體來說對台灣影響非常有限。”

[[聲源: 政大金融系教授殷乃平]]
“這就要看每個國家外匯存底夠不夠、金融承受能力夠不夠。全球金融海嘯衝擊正在慢慢發生，所以大家必須綁緊安全帶，準備萬一。”

專家認為，亞幣連貶難防新一波通膨，但新台幣相較其他國家，貶幅不算重，對台灣來說衝擊不大；倒是全球金融危機持續擴大，後續效應各界必須謹慎應對。

Related News

Defense ministry confirms nine Chinese aircraft crossed median line of Taiwan Strait

The Ministry of National Defense has confirmed that it detected 17 Chinese aircraft intrusions on Monday. Nine of them crossed the median line of the Taiwan Strait and entered Taiwan’s air defense identification zone. One of the aircraft was a BZK-007, a China-made drone for military use that is equipped with satellite communication technology. The Presidential Office says China’s constant incursions are just an attempt to test Taiwan’s bottom line and engage in gray-zone warfare.

Monday was another day of Chinese aircraft incursions. Nine of the aircraft detected on the day crossed the median line of the Taiwan Strait and entered a southwestern area of Taiwan’s air defense identification zone.

One of the aircraft was a BZK-007. It’s the first time that the Ministry of National Defense released details of an intruding drone’s flight path.

The BZK-007 is a China-developed military reconnaissance drone. It has an endurance of 16 to 24 hours and is equipped with a satellite communication antenna.

Experts have said that China is trying to test Taiwan’s bottom line with frequent drone incursions, as part of gray-zone warfare tactics.

Alex Huang
Presidential Office
They keep sending drones over on sneaky visits. Isn’t that right? They do that and their drones end up getting shot down. To be frank, it doesn’t look good for them. So I think that’s why the matter wasn’t acknowledged in the past two press briefings by China’s Taiwan Affairs Office or Ministry of Foreign Affairs.

The Presidential Office said China was trying to stir up gray-zone conflicts in the area.

Alex Huang
Presidential Office
This is a classic example of gray-zone conflicts. They don’t have any clear motives, but they also don’t cease their harassment. They are trying to test our limits while trying to make us feel uneasy.

Last month, Taiwan proposed an increased defense budget to counter the drone threat. According to the Ministry of National Defense a NT$4.35 billion defense budget will go toward procuring five drone defense systems and 232 anti-drone guns over four years. The equipment will be first deployed in Taiwan’s outlying islands, high mountain bases, missile launch sites, and designated camps. All to be well protected against China’s remote advances.

2022-09-06

President Tsai inspects base in Hualien, eats with officers and confers bonuses

President Tsai Ing-wen on Tuesday visited an Air Force base in Hualien County. While she was there she took the opportunity to meet with a distinguished female pilot, and to express her thanks to the military for its contributions to national security during a time of heightened tensions with China. Tsai also learned how the country’s domestically designed missile systems work.

Soldiers stand at the ready, while others lie face down firing weapons during live-fire exercises. President Tsai Ing-wen on Tuesday visited a base in Hualien County, inspecting several units throughout the day, two of which operate the Hsiung Feng and Sky Bow III missile systems.

During her inspection Tsai boarded a Hsiung Feng III launch vehicle, and a Sky Bow III command vehicle, getting a better understanding of how the two missile systems operate.

Tsai listened to an officer’s briefing, before taking a group photo and conferring bonuses on soldiers. During her address to troops, she touched on the matter of China’s increasingly frequent provocations against Taiwan. She said that the Air Force’s F-16 fighter jets, which can take to the skies in just six minutes, are a key component of Taiwan’s first line of defense.

Tsai Ing-wen
President
Last month, when the Chinese military was conducting drills, the Air Force’s 5th Tactical Composite Wing grew by 63 teams and 126 members of staff. The air-defense team conducted 18 sorties with 36 aircraft. Five female officers and soldiers who ate with us today demonstrated outstanding performance in piloting aircraft, managing ground operations, conducting foreign affairs liaison, and garrisoning at camp. For example, Captain Chou Wan-chun, who is here today, took on the mission of scrambling a response when Chinese military aircraft came on an intrusion.

Tsai made it a point to mention Chou, who had been seated next to the president during an earlier meal. Chou’s performance in the line of duty, and her contributions during past disaster-response efforts left a deep impression on Tsai.

Tsai Ing-wen
President
Live-fire combat training and rescue-operations training have better prepared the military for wartime rescue efforts, as well as improved its capacity for disaster relief in peacetime. This training has also demonstrated to the world that Taiwan’s military seeks innovation and improvement, and is resolved to optimize its combat capabilities. Commander Sun Chih-yung 孫知勇 of the mechanized infantry battalion also confidently told me that we Taiwanese must strive to protect ourselves. As the commander-in-chief of the Armed Forces, I am extremely proud of every officer and soldier in the R.O.C. Armed Forces for your resolute belief and ability to defend the nation.

Tsai thanked the military for its incessant contributions to Taiwan’s defense. With the Mid-Autumn Festival around the corner, she also made a point of thanking all serving staff for giving up time with their loved ones to keep the nation safe.

2022-09-06

Logo unveiled for 2022 National Day

2022-09-06

First shipment of 2 million next-generation COVID vaccines to arrive late September

Taiwan’s first batch of about 2 million next-gen COVID vaccines is scheduled to arrive in late September. Already the Advisory Committee on Immunization Practices has decided on administration guidelines. The vaccines will be offered first to people aged 65 and up, residents at long-term care facilities and immunocompromised individuals aged 18 and up. The committee recommends leaving an interval of three months between the latest booster shot and the next-gen vaccine.

In a bid to return to normalcy as soon as possible, more and more people have been getting vaccinated against COVID. Now, next-generation vaccines are on the horizon, expected as soon as the end of September. The Advisory Committee on Immunization Practices says those planning to get the new vaccine should wait at least three months after their previous shot.

Lee Ping-ing
ACIP convener
We’ve been seeing new variants appear rapidly. Every three to six months there’s a new variant. If you wait too long to get this next-gen vaccine, then you’ll miss out on its effectiveness. Secondly, countries around the world recommend an interval of three months between the previous booster and the next-gen shot.

The next-gen vaccine shipment will contain roughly 2 million doses, which will be administered to people aged 65 and over, residents of long-term care facilities, and peopled aged 18 and over with compromised immune systems.

Lee Ping-ing
ACIP convener
I think the vaccination rate in Taiwan goes up and down with the severity of the pandemic locally. When the domestic situation is severe, we see the vaccination rate go up.

Doctors say that those who can get the new shot should do so as soon as possible. Meanwhile, authorities say they are going ahead with a loosening of border restrictions.

Victor Wang
CECC
Starting next Monday, that is, Sept.12, we will resume visa-free entry for travelers from the U.S., Canada, New Zealand, Australia, Europe, and Taiwan’s diplomatic allies. All other border control and quarantine measures remain in place. Weekly arrivals are still capped at 50,000, saliva PCR tests will still be conducted upon arrival in Taiwan, and travelers must still quarantine following the 3+4 model.

Phoebe Yeh
Bureau of Consular Affairs
These countries have all resumed visa-free entry privileges for Taiwan nationals. Under the visa-free entry, travelers can do business, take part in expos, carry out inspections, conduct international exchanges, go sightseeing, visit friends and relatives, and take part in social gatherings. They can do all this without having to apply for any special permits.

Tourism operators are hopeful that a further loosening of quarantine rules is on the horizon, but with BA.5 just now starting to spread in Taiwan, and border restrictions easing, the CECC says it is not in a rush to end mandatory quarantine.

2022-09-06

Chiayi teacher runs “Walking Study” trips to get kids out and about

Usually we think school is in a classroom. But what if school is the great outdoors? In Chiayi County, that’s exactly true. Elementary school teacher Lin Ying-hui founded the “Walking Study” scheme to get kids out and about in Taiwan. He takes kids to every county and city in the country in one year. Kids come back with a greater appreciation for nature, excited about everything to see and do nationwide.

School students walk along a road. They’re getting a firsthand look at Taiwan’s towns and countryside, by walking through every county and city.

The “Walking Study” program was started five years ago by Lin Ying-hui, teacher at Heshun Elementary in Yizhu Township. Every year, he takes students on five to ten short trips of two or three days. They gradually explore all different parts of the country.

Heshun Elementary student
The coolest thing I saw was how you can see goats on the road on Orchid Island.

Heshun Elementary student
We can see great landscapes, and lots of different interesting things.

Lin Ying-hui
Heshun Elementary School teacher
We go on trips for 18 days a year. Every day we walk 20 kilometers. So overall, it’s 360 kilometers. And we can see all 18 counties and cities, walk all of them. I think that if we take them out to see things, to experience things firsthand, then it will broaden their horizons, won’t it?

Lin wants students to experience Taiwan on foot. He thinks it will make them care more for the Earth. He has been dedicated to education in rural areas for many years, and won numerous prizes. But each “Walking Study” trip needs to cover multiple counties – all the transport and accommodation is a big expense.

Lin Ying-hui
Heshun Elementary School teacher
I write the plans for every trip. Of course, the results of the trips over all these years have been great, so that’s why we keep doing it, so more students can benefit.

The “Walking Study” program has attracted NT$200,000 of donations from Chiling Charity Foundation. Lin hopes that with enough sponsorship he can keep the scheme going for many more years.

2022-09-06

Integrated circuit designers feeling pressure amid high inventories

Integrated circuit designers are facing mounting inventory pressure, amid lockdowns in China, high inflation, a slowing economy and reduced consumer demand. Reports say one chipmaker has already seen a slash in orders, and has reduced prices by up to 20%. So far, Taiwanese chipmaking giants such as TSMC, UMC and Vanguard International Semiconductor are keeping prices as they are. But experts say that could change in the first half of 2023.

People stand in long lines for a PCR test. COVID cases are on the rise in China, and places like Chengdu in Sichuan province have gone on lockdown, affecting local industry. Taiwan businesses with operations in China say pressure is on due to both internal and external factors. Amid high inventories, reports say orders at an integrated circuit designer have been drastically cut, resulting in price drops of up to 20%.

Ray Yang
ITRI Industrial Economics and Knowledge Center
Suppliers for brands, laptops and smartphones are seeing soaring inventories. Integrated circuit designers are feeling that to a certain extent. Of course, the impact on them is more intense than on Taiwanese silicon wafer suppliers.

High inflation, a slowing economy and low demand from consumers has resulted in high inventories of laptops and smartphones. Reports say a Chinese silicon wafer supplier lowered its prices back in July amid inventory pressure from downstream buyers. Though mature industry players often lower prices, upstream giants such as TSMC, UMC and Vanguard International Semiconductor say they won’t lower their prices this quarter. That’s due to their diverse clients, and high demand for car chips, as well as chips for large-scale machinery and data centers. But some experts say that amid slowing demand, it’s only a matter of time until upstream suppliers are affected.

Ray Yang
ITRI Industrial Economics and Knowledge Center
When will Taiwan chipmakers be affected? I think it shouldn’t happen until the first half of next year. It might not even be until the second quarter that the effects are more pronounced.

Laptop and smartphone inventories continue to soar. Already, in many industries one month of inventory has already turned to two months. That combined with concerns over a global recession, rising inflation and a hawkish Fed could all further send ripples across the semiconductor sector.

2022-09-06

Consumer price index up by 2.66% in August from previous year

2022-09-06

Jay Chou releases never-before-heard demo tracks in collector’s edition

2022-09-06

Bakeries and restaurants come up with delicious treats for Mid-Autumn Festival

With Mid-Autumn Festival coming up, many bakeries and restaurants are planning to offer delicious treats involving mooncakes, which are special pastries with fillings traditionally eaten during the festival. A 50-year-old bakery shop in Taipei says it is making around 3,000 mooncakes by hand a day in order to keep up with booming demand. Another hot pot store is offering all-you-can-eat mooncakes and pomelos until the end of September. FTV reporter Stephany Yang takes us in for a look!

Stephany Yang
FTV reporter
Mid-Autumn Festival is coming soon. A hot pot store in Taipei is offering all-you-can-eat moon cakes, pineapple cakes and pomelos.

All-you-can-eat wagyu beef hot pot paired with desserts, including moon cakes, pineapple cakes, pomelos, and bubble tea milk tea. In Taiwan, Mid-Autumn Festival feasts normally feature barbecues. This hot pot place has given a new twist to festive fare, serving up all-you-can-eat hot pot paired with Mid-Autumn Festival desserts.

Member of public
I think it is much more convenient than having a barbecue. You can also eat mooncakes and pomelos here, which gives off a Mid-Autumn Festival atmosphere.

Member of public
There’s also beautiful scenery here. Generally, everyone has barbecues during the Mid-Autumn Festival, but I think hot pot is also a good choice.

This hot pot place just opened a Taipei branch half a year ago. The owners say they hope to celebrate each holiday by serving up the traditional treats eaten that day. For Mid-Autumn Festival, the store ordered more than 3,000 mooncakes and over 200 kilograms of pomelos.

Li Jia-lin
Store manager
Because everyone thinks of barbecues for Mid-Autumn Festival, our hot pot restaurant had no market. So we launched these mooncake and pomelo activities related to the Mid-Autumn-Festival. We plan to order 3,000 mooncakes and buy 200 kilograms of pomelos for the promotions in the early stage of the event. In the later stage, we will prepare another 200 kilograms of pomelos. In the offseason for the dining industry in September, we hope to increase our revenue by 20%.

With Mid-Autumn Festival quickly approaching, this 50-year-old bakery says it makes around 3,000 mooncakes by hand a day in order to keep up with orders. These particular mooncakes are filled with five kinds of nuts, including cashews and walnuts.

Ho Cheng-chang
Store owner
Now, we make around 3,000 to 4,000 pieces every day. We hope to sell 35,000 to 42,000 pieces during the Mid-Autumn Festival. We’ve adjusted our prices up by about 8%. It’s because many raw materials have gone up a lot this year.

As Taiwan prepares for the Mid-Autumn Festival, stores across the island are discovering innovative ways to appeal to mooncake lovers.

2022-09-06