Taiwan central bank governor says no foreign exchange controls

TAIPEI Taiwan central bank governor Yang Chin-long said there would be no foreign exchange controls during his tenure at the central bank, adding that management measures were sufficient to maintain market stability if there were large capital outflows.

Yang's five-year term is due to expire early next year, but he can be reappointed for a second term, though there has been no confirmation either way.

The Taiwan dollar has fallen sharply in recent weeks due to the aggressive interest rate hikes in the United States and the U.S. dollar strength, as well as worries over slowing global economic growth.

It has lost 13 per cent against the dollar this year.

Yang, taking questions in parliament, said recent outflows of foreign capital were mainly due to U.S. interest rate hikes and that the United States would continue to raise interest rates until the end of the year.

A statement was issued on Wednesday by the central bank, after it said that Yang's comments in parliament earlier in the week had been misreported.