Taipei: The Central Bank of the Republic of China (Taiwan) has issued a call to market commentators, urging them to refrain from speculating on the potential for a sharp appreciation of the Taiwan dollar against the U.S. dollar, as such actions could disrupt market stability.

According to Focus Taiwan, the central bank emphasized that speculative comments have led to expectations of a continued strengthening of the Taiwan dollar. The bank advised Taiwanese enterprises to act rationally and avoid hastily selling off U.S. dollars based on speculation, emphasizing the importance of safeguarding their long-term interests.

The central bank's statement followed a notable decline in the U.S. dollar, which fell NT$0.919 on Monday to close at NT$30.145, following a drop of NT$0.953 to end at NT$31.064 the previous Friday. This resulted in a 6.21 percent decrease in the U.S. dollar against the Taiwan dollar over two sessions.

Reports from local news media have suggested that the U.S. dollar's decline is linked to pressure from the Trump administration amid ongoing discussions between Taiwan and the United States about reducing the 32 percent reciprocal tariff imposed by the White House earlier this year, which was later suspended.

There have been references to the "Mar-a-Lago Accord" under U.S. President Donald Trump, with claims that the U.S. is seeking to lower reciprocal tariffs and promote currency appreciation to enhance the competitiveness of American goods. However, the central bank clarified that it is not involved in these negotiations and noted that the U.S. Treasury Department has not requested Taiwan to influence the Taiwan dollar's value.

The Cabinet's Office of Trade Negotiations also confirmed that forex exchange issues have not been part of the discussions with the U.S. Taiwan and the U.S. held their first in-person tariff meeting on May 1 in Washington, where the focus was on tariffs, non-tariff barriers, and other bilateral trade matters.

According to the central bank, Taiwan's trade surplus with the U.S. has primarily increased due to strong American demand for Taiwan-made information and communications technology products, rather than currency fluctuations. In 2024, the U.S. trade deficit with Taiwan grew from US$47.8 billion to US$73.9 billion.

The central bank asserted that it has not manipulated the Taiwan dollar's value and cited U.S. Treasury reports that have not labeled Taipei as a currency manipulator in recent years. Central Bank Governor Yang Chin-long described recent market fluctuations as "abnormal" and expressed hope for stabilization.

Regarding reports on "U.S. century bonds," the central bank noted that Stephen Miran, the chair of the White House Council of Economic Advisers, clarified that this proposal has not been adopted as official policy. U.S. Treasury Secretary Scott Bessent also stated that there are no plans to issue century bonds.