Taiwan will not drive down its currency: Ma Ying-jeou

[ImperialWalker]

Taiwan will not drive down its currency: Ma Ying-jeou
CNA 2013-07-27 09:40

New Taiwan dollar banknotes. (Photo/Yen Chien-lung)

The government will not devalue the Taiwan dollar to boost exports, President Ma Ying-jeou told Bloomberg News on Thursday in Taipei, adding that the country's economic growth forecast for this year remains at 2% at least.

The livelihood of the Taiwanese people may be hurt if the Taiwan dollar depreciates, as this would drive up the prices of imported goods, Ma said. He said Taiwan will not follow in the footsteps of Japan, which has lowered the value of the yen in an effort to boost its ailing economy.

The Taiwan dollar has climbed 22.3% against the yen over the past 12 months as a result of the new monetary policies of Japan's prime minister, Shinzo Abe.

Taiwan and Japan have different economic situations, with the latter trapped in a dire deflation, Ma said. "We have a more balanced policy," Ma said. "We think a stable currency will affect our imports and exports in a more balanced way."

In addition, Taiwan is still hoping to see a 2013 GDP growth of at least 2% despite a sluggish recovery of the global economy, the president said.

"We want to grow at least 2% and hope for faster than 2%," he said, adding that the growth will depend on how quickly Europe and the United States recover.

Taiwan has lowered its forecast for economic growth in 2013 to below 3% after its first quarter growth fell far below expectations.

The government in May predicted GDP growth of 2.4% this year, substantially lower than its projection in February of 3.59%.

Ma said Taiwan will need to expand to other markets besides China because that country is also experiencing an economic slowdown. He said Taiwan is trying to increase its market presence in Southeast Asia to reduce its dependence on exports to China and the US.