Focus Taiwan App
Download

Taiwan to help industries facing exchange rate fluctuations

07/02/2025 10:35 PM
To activate the text-to-speech service, please first agree to the privacy policy below.
CNA file photo
CNA file photo

Taipei, July 2 (CNA) The Ministry of Economic Affairs (MOEA) has formed a task force to help Taiwan's small and medium-sized enterprises (SMEs) cope with the risks of exchange rate losses amid recent fluctuations in the Taiwan dollar's value against the U.S. dollar, a senior MOEA official said Wednesday.

Deputy Economics Minister Ho Chin-tsang (何晉滄) said at a press conference that there are 46,000 export-oriented SMEs in Taiwan, whose risk tolerance is lower than that of large corporations.

Most of the SMEs are in the manufacturing sector, and 80 percent of them quote their prices in U.S. dollars, he said.

The nine industries most impacted by exchange rate fluctuations identified by the MOEA include the metal products, machine tool, machinery, textile, food products, rubber and plastics, car components, electronic components, and information and communications industries.

The MOEA's Small and Medium Enterprise and Startup Administration (SMESA) will serve as an advisor to the multi-agency task force, which will coordinate efforts and stay updated on exchange rate fluctuations, provide industry upgrade guidance, and support overseas marketing, said Ho.

The task force will also heighten awareness of hedging tools, including forex options, natural hedges and forward exchange transactions, he added.

The group will remind SMEs to plan hedging strategies, as market fluctuations are expected to continue once the U.S. "reciprocal tariffs" are officially implemented, he said.

SMESA Director General GJ Lee (李冠志) said that state-owned banks will set up service sections on their websites to showcase the aforementioned hedging products and help businesses purchase them at lower cost, which will reduce their risks, while also simplifying purchasing procedures.

Regarding the simplification of procedures, Lee said that the MOEA will coordinate with relevant regulatory institutions such as the Financial Supervisory Commission as soon as possible.

The ministry is also providing financial support measures for SMEs, including financing to diversify projects, a preferential credit guarantee program for export finance, and stimulus project finance, to ease funding pressures, Lee said.

(By Liu Chien-ling and Wu Kuan-hsien)

Enditem/cs/AW

    0:00
    /
    0:00
    We value your privacy.
    Focus Taiwan (CNA) uses tracking technologies to provide better reading experiences, but it also respects readers' privacy. Click here to find out more about Focus Taiwan's privacy policy. When you close this window, it means you agree with this policy.
    48