Taiwan Lifts Deutsche Forex Restrictions

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Taiwan Lifts Deutsche Forex Restrictions

Taiwan Lifts Deutsche Bank FX Suspension

Since February 2022 the Deutsche Bank was barred from trading the Taiwan dollar forwards either deliverable or non-deliverable due to a crackdown measure on speculation. However, the central bank is learned to have quietly allowed it to resume trading. An official statement from either Taiwan or Deutsche is meanwhile awaited.

Deutsche Bank was punished for two years alleged to have grained companies involved in the currency speculation and the actions were affecting Forex market stability in the island country.

Taiwan dollar has lately strengthened against the USD as the demand for tech products was up during the COVID-19 pandemic period in 2020 and 2021. The economy of the country is mainly dependent on international trade.

Sources said in anonymity that the Deutsche Bank, which has operated in the country for years, responded to fix its process.

Meanwhile, the central bank is concerned that exports could become expensive due to the strong native dollar and may lead to the crosshairs of the US with respect to currency manipulation.

Taiwan has exceeded the thresholds of the US Treasury for currency manipulation leading to the enhancement of analysis under the trade law of 2015. The same situation is being witnessed in Vietnam.

The economy of Taiwan is capitalist, dynamic and driven by export. Its GDP averaged 8 percent in the period of the past three decades. It is ranked fifth in the world in terms of foreign reserves. China, Indonesia, the Philippines, Vietnam, Malaysia and Thailand are its major foreign investors. It is a member of the WTO since 2002 and often participates in international organizations.

Deutsche Bank was founded in 1869 and is headquartered in Frankfurt, Germany. It is a multinational investment bank and listed on the NYSE as well as the Frankfurt Stock Exchange. It has operations in about 58 countries and mostly in Europe, Asia and America.

It is ranked 63 and 21st in the world with respect to market capitalization and largest bank respectively.

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