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Vol.38- No.4
Vol.38- No.4 General Mills Taiwan

Sponsor: New York Life Insurance Taiwan Corporation

 


 



Taiwan Briefs PDF Print E-mail
MACROECONOMICS

NT SURGES, BANK REACTS

Soaring in value and breaking several records, but running out of steam a little at the end of the month, the NT dollar was the biggest story in the local economy during March. In the early part of the month, the NT gained value against its U.S. counterpart due to foreign fund inflows – an influx encouraged by an interest-rate differential between Taiwan and the United States – as well as expectations that cross-Strait ties might improve if Ma Ying-jeou, who harbors a friendly attitude toward economic ties with China, won the presidential election. Then, two days after Ma was elected, the NT climbed to its highest level in more than a decade. The currency gained 1.1% on the day to reach NT$30.229 against the U.S. dollar. At that point in the year the NT had gained 6.8%, making it the second-best performer in Asia after the Japanese yen. Over the following days the NT dollar continued its charge, breaking the NT$30 barrier at one point on March 27, the first time it had done so since October 1997.
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Editorial: Avoiding Economic Isolation PDF Print E-mail

Over the past several decades, Taiwan has had to struggle to overcome China’s attempts to isolate it politically. Although Taiwan’s “international space” has indeed been constrained compared with most countries, the use of flexible and pragmatic diplomacy has enabled Taiwan to maintain effective links with the rest of the world community. Writing a new chapter in the history of diplomacy, for example, Taiwan has been able to conduct relations with other countries through such institutions as the American Institute in Taiwan, the Interchange Association (Japan), and the various European trade offices rather than through formal embassies.

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