{"id":4642,"date":"2020-03-17T10:45:28","date_gmt":"2020-03-17T02:45:28","guid":{"rendered":"http:\/\/blog.rchss.sinica.edu.tw\/wwchu\/?p=4642"},"modified":"2020-03-17T10:45:28","modified_gmt":"2020-03-17T02:45:28","slug":"it-is-time-for-a-currency-manipulation-truce-especially-as-taiwan-disclosed-its-true-foreign-exchange-position","status":"publish","type":"post","link":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/?p=4642","title":{"rendered":"It Is Time for a Currency Manipulation Truce\u2026 Especially as Taiwan Disclosed Its True Foreign Exchange Position"},"content":{"rendered":"<h1><span style=\"font-family: 'Droid Sans', Arial, sans-serif;font-size: 14px\">There is no need for the Treasury to put out its foreign exchange report on time this April.\u00a0There are other, more pressing priorities.\u00a0And if it does, the\u00a0Treasury should exercise its discretion to allow those countries that came close to meeting the definition of manipulation last year\u00a0off the hook.<\/span><\/h1>\n<p>Blog Post\u00a0by\u00a0<a href=\"https:\/\/www.cfr.org\/expert\/brad-w-setser\">Brad W. Setser<\/a>\u00a0 March 11, 2020<\/p>\n<p><a href=\"https:\/\/www.cfr.org\/blog\/it-time-currency-manipulation-truce-especially-taiwan-disclosed-its-true-foreign-exchange?utm_source=blognotification&amp;utm_medium=email&amp;utm_campaign=Blog%20Post%20Notification%20Follow%20the%20Money&amp;utm_term=FollowTheMoney\">https:\/\/www.cfr.org\/blog\/it-time-currency-manipulation-truce-especially-taiwan-disclosed-its-true-foreign-exchange?utm_source=blognotification&amp;utm_medium=email&amp;utm_campaign=Blog%20Post%20Notification%20Follow%20the%20Money&amp;utm_term=FollowTheMoney<\/a><\/p>\n<p>Taiwan&#8217;s central bank (the Central Bank of the Republic of China, or the CBC) helped make this an easy call with a significant increase in its disclosure last week.<\/p>\n<p>It\u00a0<a title=\"disclosed two things on Wednesday\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-03-11\/taiwan-reports-99-billion-in-currency-swaps-in-rare-disclosure\" target=\"_blank\">disclosed two things on Wednesday<\/a>\u2014<\/p>\n<p>One that its true foreign exchange position is over $600 billion, as it has over $30 billion in domestic foreign currency bank deposits as well as almost $100 billion in foreign currency swaps with local financial institutions.<\/p>\n<p>And two, that its actual intervention in the market in 2019 was $5.5 billion ($6.6 billion if you look just at the second half of 2019, as it reported that it sold in the first half of 2019). That\u2019s around a percentage point of its GDP, below the Treasury threshold. Remember all those\u00a0<a title=\"Taiwanese bond ETF purchases\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-07-10\/taiwan-is-home-to-the-world-s-fastest-growing-etf-market\" target=\"_blank\">Taiwanese bond ETF purchases<\/a>? That\u2019s a probably big reason why the CBC didn\u2019t have to intervene that much, as the lifers could buy ETFs (technically local currency products) unhedged (though the ETFs do now carry\u00a0<a title=\"a higher capital charge\" href=\"https:\/\/www.bloomberg.com\/markets\/fixed-income?sref=pKfngeVk\" target=\"_blank\">a higher capital charge<\/a>).<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is no need for the Treasury to put out its foreign exchange report on time this April.\u00a0There are other, more pressing priorities.\u00a0And if it does, the\u00a0Treasury should exercise its discretion to allow those countries that came close to meeting the definition of manipulation last year\u00a0off the hook. Blog Post\u00a0by\u00a0Brad W. Setser\u00a0 March 11, 2020 [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,7],"tags":[],"class_list":["post-4642","post","type-post","status-publish","format-standard","hentry","category-taiwan-policy","category-international-economics"],"_links":{"self":[{"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/posts\/4642","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4642"}],"version-history":[{"count":2,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/posts\/4642\/revisions"}],"predecessor-version":[{"id":4644,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=\/wp\/v2\/posts\/4642\/revisions\/4644"}],"wp:attachment":[{"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.rchss.sinica.edu.tw\/wwchu\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}