Taipei: Taiwan's central bank stated that its recent interventions in the foreign exchange market have been directed at maintaining price stability rather than supporting local exporters.According to Focus Taiwan, during a legislative session on the long-term impact of Middle East conflicts on energy and consumer prices, Central Bank Deputy Governor Yen Tzung-ta emphasized that exchange rate and price stability have been prioritized over considerations for exports. This statement comes amid ongoing discussions about the potential economic effects of international tensions.In March, Taiwan's foreign exchange reserves experienced a reduction of US$8.601 billion, bringing the total to US$596.886 billion. This decrease was attributed to a series of interventions by the central bank in response to a strengthening U.S. dollar. The central bank's report to lawmakers indicated that while Middle East tensions have led to increased global crude and commodity prices, the resulting imported inflation pressures remain manageable.Yen highlighted the central bank's commitment to stabilizing the exchange rate to cushion the domestic economy from global commodity price fluctuations. This approach aims to mitigate the impact of external economic pressures on Taiwan's economy.Democratic Progressive Party (DPP) lawmaker Kuo Kuo-wen expressed concerns regarding the depreciation pressure on the New Taiwan dollar and its potential to exacerbate inflation. Kuo inquired whether the central bank might consider adjusting its approach to capital flows, specifically to discourage foreign investors from immediately remitting funds abroad after selling Taiwanese stocks, which could help ease downward pressure on the currency.In response, Yen noted the difficulty of implementing such measures due to the principle of free capital movement. He explained that under current regulations, if foreign investors do not immediately repatriate funds after selling shares, the capital must remain invested in Taiwan's stock market, thus maintaining a level of stability within the financial system.