As countries around the world struggle to shelter their economies from the effects of the coronavirus pandemic, Taiwan is seeing the opposite.
Its economy is projected to grow 1% this year, according to a Bloomberg survey of economist estimates, second only to China’s 2% among major economies. Taiwan has benefited from companies shifting some of their manufacturing back home from China amid growing tensions between Beijing and Washington, as well as increased demand for its products from the U.S.
While such good news would normally increase the allure of the local currency — and thereby reduce the attractiveness of Taiwan’s exports overseas — the central bank has taken aggressive action to limit gains. The result is the currency has been the least volatile among 31 major exchange rates against the greenback in the past three months, after the pegged Hong Kong dollar.