According to a report published by Reuters, the central bank of Taiwan has lifted foreign exchange (FX) trading curbs on ING, the Amsterdam-based financial services giant, and ANZ (Australia and New Zealand Banking Group).
In February 2021, the central bank imposed restrictions on ING and ANZ’s Taipei offices. During the same month, Taiwan’s central bank banned Deutsche Bank from trading Taiwan dollar deliverable and non-deliverable forwards.
Additionally, the central bank suspended Deutsche Bank for two years from trading FX derivatives as a part of the central bank’s crackdown on speculative trading in the country. In February, Taiwan’s central bank mentioned that Taipei offices of ING and ANZ would not be allowed to trade Taiwan dollar deliverable and non-deliverable forwards for nine months.
However, the latest development shows that the central bank has decided to lift trading curbs earlier than the anticipated date. Reuters mentioned that a spokesperson of ING has confirmed that the suspension had been lifted.
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“But, two sources with direct knowledge of the matter said that ING and ANZ have been allowed to resume Taiwan dollar deliverable and non-deliverable forwards trades since earlier this month, shortening their punishment time,” Reuters mentioned in the report.
As a result of trading restrictions in February, ING and ANZ took major steps to improve the existing regional FX trading structure. “The sources said that the central bank had told the banks at the time they were punished that they could apply for an early lifting of the restrictions if they could show the central bank they had carried out improvement measures,” Reuters added.
Taiwan is one of the fastest-growing economies in the world. According to a report published by CBNC, Taiwan became Asia’s top-performing economy last year. The Taiwan dollar has gained strength against the US dollar in the last few months. Currently, one Taiwan dollar equals approximately 0.036 USD.