World Economy

Taiwan's Central Bank Relaxes Currency Controls as Regional Outflows Mount

Taiwan's central bank has loosened restrictions on exporters exchanging U.S. dollars for the local currency to stabilize the New Taiwan Dollar. Record foreign investment withdrawals have pressured the currency to become Asia's weakest performer in recent weeks. The central bank's action reflects growing concerns over capital flight as regional investors reallocate portfolios. By easing foreign exchange controls, the central bank aims to improve dollar supply in local markets and reduce upward pressure on conversion rates. Exporters previously faced stricter limitations on currency conversions, which the central bank has now relaxed to encourage dollar sales into the domestic market.