Central bank Governor Perng Fai-nan (彭淮南), who is attending the annual meeting of the Asian Development Bank (ADB) in Bali, Indonesia, yesterday urged Asian countries to set up a regional exchange rate mechanism to maintain the stability of Asian currencies.
Established in 1966, the goal of the ADB is to reduce poverty in the Asia-Pacific region by promoting equitable and environmentally sustainable economic growth.
“One of the most important actions that can be taken to address the global financial crisis is to strengthen regional cooperation,” Perng told the international body’s 42nd annual assembly.
The ADB should take the lead in furthering cooperative relationships among member countries in light of its extensive experience, highly qualified staff, advanced technology and other resources, Perng said in a faxed statement.
Headquartered in Manila, the regional organization has 67 members, including 48 from the region. Taiwan is a founding member.
Lin Sun-yuan (林孫源), the director-general of the central bank’s department of foreign exchange, said in Taipei that the proposed exchange rate coordination regime, if realized, could help shield a member country’s currency from the negative effects of hot money.
The South Korean won, for instance, has fluctuated drastically in recent months and only appeared to regain stability recently, Lin said.
He said the ADB could set aside a fund and lend money to members whose currencies experienced excessive fluctuations caused by speculators.
The central bank has voiced concern that the New Taiwan dollar is being negatively affected, with the currency picking up 1.1 percent this year while economic fundamentals remain dismal.
Owing partly to capital influx, the nation’s foreign exchange reserves rose US$4.537 billion last month to a new high of US$304.66 billion, Lin said.
He attributed the increase to the central bank’s management strategy, as well as gains in foreign exchange reserves denominated in the euro, the pound and other currencies.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) founder Morris Chang (張忠謀) yesterday said that Intel Corp would find itself in the same predicament as it did four years ago if its board does not come up with a core business strategy. Chang made the remarks in response to reporters’ questions about the ailing US chipmaker, once an archrival of TSMC, during a news conference in Taipei for the launch of the second volume of his autobiography. Intel unexpectedly announced the immediate retirement of former chief executive officer Pat Gelsinger last week, ending his nearly four-year tenure and ending his attempts to revive the
WORLD DOMINATION: TSMC’s lead over second-placed Samsung has grown as the latter faces increased Chinese competition and the end of clients’ product life cycles Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) retained the No. 1 title in the global pure-play wafer foundry business in the third quarter of this year, seeing its market share growing to 64.9 percent to leave South Korea’s Samsung Electronics Co, the No. 2 supplier, further behind, Taipei-based TrendForce Corp (集邦科技) said in a report. TSMC posted US$23.53 billion in sales in the July-September period, up 13.0 percent from a quarter earlier, which boosted its market share to 64.9 percent, up from 62.3 percent in the second quarter, the report issued on Monday last week showed. TSMC benefited from the debut of flagship
A former ASML Holding NV employee is facing a lawsuit in the Netherlands over suspected theft of trade secrets, Dutch public broadcaster NOS said, in the latest breach of the maker of advanced chip-manufacturing equipment. The 43-year-old Russian engineer, who is suspected of stealing documents such as microchip manuals from ASML, is expected to appear at a court in Rotterdam today, NOS reported on Friday. He is accused of multiple violations of the sanctions legislation and has been given a 20-year entry ban by the Dutch government, the report said. The Dutch company makes machines needed to produce high-end chips that power
Taiwan would remain in the same international network for carrying out cross-border payments and would not be marginalized on the world stage, despite jostling among international powers, central bank Governor Yang Chin-long (楊金龍) said yesterday. Yang made the remarks during a speech at an annual event organized by Financial Information Service Co (財金資訊), which oversees Taiwan’s banking, payment and settlement systems. “The US dollar will remain the world’s major cross-border payment tool, given its high liquidity, legality and safe-haven status,” Yang said. Russia is pushing for a new cross-border payment system and highlighted the issue during a BRICS summit in October. The existing system
RSS