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Taiwan's central bank is planning to require foreign investors receiving USD dividends from major corporations like TSMC to adhere to a single currency choice. According to reports, authorities are currently leaning toward allowing investors to change their currency preference only once per year. This measure is designed to mitigate foreign exchange volatility often triggered by large-scale currency switching during peak dividend seasons.
The proposed restrictions emerge amid a complex regional economic backdrop; recent data from China showed industrial production grew by 4.1% in May 2026, missing the 5.9% forecast per market data. Conversely, Thailand's GDP growth reached 2.8%, exceeding the 2.2% estimate, highlighting the divergent performance across Asian markets that necessitates Taiwan's focus on maintaining New Taiwan Dollar (TWD) stability against volatile capital flows.
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Sign InTraders are monitoring TWD levels following these reports, while global markets digest recent catalysts such as the US NY Empire State Manufacturing Index, which reached 19.6, significantly beating expectations (close May 15, 2026). Upcoming events to watch include the scheduled press conference in China and India's balance of trade data, which will provide further clarity on emerging market liquidity trends.