TAIPEI (Taiwan News) — After the Taiwan dollar rapidly appreciated against the US dollar on Monday, the Central Bank denied speculation that Washington had asked Taipei to lift the value of the Taiwan dollar as part of a trade deal.

At an emergency press conference on Monday, Central Bank Governor Yang Chin-long (楊金龍) used seven key points to urge an end to market speculation. Yang said the appreciation was driven by foreign capital inflows into local markets and a rebound in global stock sentiment amid hopes of progress in trade tariff negotiations, per CNA.

First, Yang pointed to Taiwan's strong economic fundamentals. He said last year’s economic growth rate was 4.59%, while this year’s first-quarter growth is estimated at 5.37%, surpassing the US, China, Singapore, and South Korea, per the Directorate General of Budget, Accounting and Statistics.

Second, Yang said the US suspension of new tariffs on April 9 and subsequent trade talks triggered global stock market gains. This drew foreign capital into Taiwan stocks, while manufacturers increased US dollar supply in anticipation of further appreciation, causing volatility in the exchange rate.

Third, Yang emphasized the US did not request a stronger Taiwan dollar. He also confirmed that the Central Bank did not participate in last week’s Taiwan-US tariff negotiations in Washington. Taiwan’s Office of Trade Negotiations said foreign exchange was not discussed during the talks.

In a separate video on Monday, President Lai Ching-te (賴清德) also pushed back on rumors: “Precisely because the cause of the Taiwan-US trade deficit has nothing to do with the exchange rate, the exchange rate issue will naturally not be mentioned in negotiations.” He urged the public to stop spreading misinformation.

Yang said Taiwan’s trade surplus with the US is driven by demand for ICT products and not currency manipulation. He noted Taiwan has never been labeled a currency manipulator by Washington.

Fourth, Yang addressed media reports about a so-called Mar-a-Lago Accord, claiming the US might pressure countries to appreciate their currencies and issue 100-year bonds. He said this was speculation, and former Trump adviser Stephen Miran clarified the century bond idea predated his tenure and is not part of current policy.

Fifth, US Treasury Secretary Scott Bessent said there is no plan for US debt swaps. The Treasury’s second-quarter refinancing statement on April 30 confirmed it would maintain its debt issuance strategy and made no mention of centennial bonds or taxing foreign holdings.

Sixth, Yang urged financial commentators to avoid spreading unverified claims about Taiwan’s forex market, warning such comments could destabilize the economy.

Seventh, the Central Bank advised manufacturers not to act on exaggerated or false forecasts, which could lead to poor decision-making and foreign exchange losses.