U.S. and Taiwan Commit to Currency Fair Play

The U.S. Treasury and Taiwan's central bank have agreed to maintain close consultations on macroeconomic and foreign exchange rate issues. Both parties pledged to refrain from manipulating currency values for competitive gain, reserving interventions for cases of excess volatility or disorderly exchange rate movements.

The U.S. Treasury and Taiwan's central bank solidified their stance on maintaining integrity in currency-related matters during a recent agreement. Announced Thursday, both entities vowed to continue transparent consultations on macroeconomic strategies and foreign exchange rates.

A joint statement from the U.S. Treasury emphasized that currency manipulation for competitive advantage would be avoided. Importantly, they acknowledged instances where foreign exchange intervention might be permissible under specific conditions.

The statement assured that interventions should be limited to periods of significant volatility and erratic fluctuations in exchange rates, highlighting their commitment to preserving order in macroeconomic environments.

(With inputs from agencies.)