The New Taiwan dollar & foreign exchange.

This article focuses on the Taiwan dollar, the local currency of Taiwan, that is is being used as of September 1997. The currency has been considered stable in value in recent years compared with many other currencies. Several important factors may influence the exchange rate of the local currency; among these are the international value of the U.S. dollar in relation to other currencies, the interest rate differentials between the domestic and foreign markets, the obvious trend of the Taiwanese dollar, trade balances, outward investments, inflows of foreign and overseas Chinese investments, travel expenditures, short-term capital movements, and the attitude and intervention policies of the monetary authorities. In addition, political concerns such as changes in the nature of cross strait relations between the country and China should be taken into account when considering the short-term fluctuation of the dollar.