No request from U.S. for appreciation of Taiwan dollar: Central bank

Taipei, May 2 (CNA) The Central Bank of the Republic of China (Taiwan) said it has not received any request from the U.S. Department of the Treasury to push for an appreciation of the Taiwan dollar, amid speculation fueled by the currency's recent sharp rise against the U.S. dollar.

In a statement releases on Thursday, the central bank refuted local media reports suggesting Washington had exerted pressure on Taiwan to allow its currency to strengthen.

The reports cited the so-called "Mar-a-Lago Accord" under U.S. President Donald Trump, claiming the United States had sought reciprocal tariffs and currency adjustments in negotiations with trading partners.

Last month, the Taiwan dollar appreciated by NT$1.165, or 3.64 percent, closing at NT$32.017 against the greenback -- its strongest level in more than five months.

After the May 1 Labor Day holiday, the currency continued its rally on Friday, rising an additional NT$0.623 to end the morning session at NT$31.394.

On April 2, Trump announced sweeping reciprocal tariffs targeting countries with large trade surpluses with the U.S., including a proposed 32 percent import duty on goods from Taiwan.

A week later, however, Trump suspended the tariffs for 90 days to allow time for negotiations.

Quoting U.S. Treasury Secretary Scott Bessent, the central bank said Bessent had never mentioned any foreign exchange targets during tariff discussions with his Japanese counterpart.

Instead, he had emphasized the importance of adhering to the G7 agreement, which discourages competitive currency devaluation, the bank said.

According to the central bank, Japanese officials confirmed that both Tokyo and Washington had agreed that the yen-dollar exchange rate should be determined by market forces.

The bank also emphasized that it maintains regular and constructive communication with the U.S. Treasury Department on foreign exchange and geoeconomic matters, allowing both sides to exchange views effectively.

It reiterated that the Taiwan dollar has remained relatively stable compared to other major currencies, pledging to continue monitoring global financial markets while working to maintain "dynamic stability" in the local currency.

Since 2021, the U.S. Treasury Department has stated in its biannual foreign exchange policy reports that it has not found any of its major trading partners to be engaging in currency devaluation practices, the central bank said.

In the U.S. department's most recent report, released in November 2024, Taiwan was included on the Treasury's currency "watch list" for the sixth consecutive time. The designation was based on criteria established under the Omnibus Trade and Competitiveness Act of 1988, which evaluates the foreign exchange practices of major U.S. trading partners.

The U.S. Treasury Department uses three criteria to assess potential currency manipulation: a bilateral trade surplus of at least US$15 billion with the United States; a material current account surplus of at least 3 percent of GDP; and evidence of persistent, one-sided foreign exchange intervention.

Taiwan currently meets the first two criteria, making it likely to remain on the watch list, according to the central bank.