TAIPEI (Taiwan News) — The Ministry of Economic Affairs on Wednesday launched a special task force to help businesses, especially small and medium-sized ones, manage risks posed by the strengthening Taiwan dollar, which threatens export competitiveness.

The Taiwan dollar closed at NT$29.019 against the US dollar on Wednesday, marking its strongest level in over three years. The stronger currency lowers costs for importers by making foreign goods cheaper, but hurts exporters by raising the price of Taiwanese products in international markets, according to CNA.

Deputy Minister of Economic Affairs Ho Chin-tsang (何晉滄) said Taiwan is home to around 46,000 export-oriented SMEs, mostly in manufacturing. About 80% of these firms conduct transactions in US dollars, making them highly vulnerable to currency fluctuations.

To support these businesses, the task force will work with state-owned banks to promote the use of foreign exchange hedging tools, such as forward contracts and options. Dedicated online platforms will also be launched to help SMEs adopt low-cost, low-risk strategies.

The task force will meet daily for an initial three-month period to monitor exchange rate movements, support industrial upgrading, and explore overseas market opportunities. Inter-ministerial coordination will be considered if currency volatility intensifies.

The ministry also plans to simplify regulatory procedures and encourage banks to review and ease internal processes to make hedging more accessible for SMEs.

Ho said the Central Bank is also working to stabilize the exchange rate and mitigate the impact on industry. He encouraged businesses to implement risk management strategies proactively.