Central Bank of the Republic of China (Taiwan) Governor Yang Chin-long (楊金龍) said on Thursday, July 9, during a Legislative session, that allowing dividends to foreign investors in USD will help reduce exchange rate volatility for TSMC, which has 70% foreign ownership. This statement followed the Financial Supervisory Commission (FSC) announcement that listed companies can pay dividends in currencies other than the New Taiwan Dollar (NTD). 

The FSC’s decision aims to continue promoting the internationalization of Taiwan’s capital market and to provide a friendly investment environment for foreign investors. It is expected to take effect in the third quarter of this year. 

The NTD recently fell below NT$32.1 (US$1), influenced by the strong U.S. economy and capital outflows from Asian markets. The decline has prompted several legislators to raise concerns about its impact on Taiwanese industries. Yang acknowledged legislators’ concerns, but noted that for export-oriented manufacturers, a weaker NTD can help balance supply and demand. He added that the outflow of foreign capital, rather than high U.S. interest rates, primarily affects the distribution of more than NT$100 billion (US$3.1 billion) in dividends by listed companies in July.