Taiwan Exchange Rate: 4.3% Swing in 2023 Expected

Currency Overview

The Taiwanese dollar (TWD) is the official currency of Taiwan. It is issued by the Central Bank of the Republic of China (Taiwan). The TWD is pegged to the US dollar, with a fixed exchange rate of TWD 28.3 to USD 1. This peg has been in place since 1949, and has helped to stabilize the TWD's value.

The TWD is a freely convertible currency, and is widely traded on the foreign exchange market. It is also used as a reserve currency by some central banks.

Exchange Rate Forecast

The TWD is expected to fluctuate within a narrow range against the USD in 2023. The Central Bank of Taiwan has stated that it will continue to maintain the peg between the TWD and the USD. However, there are a number of factors that could cause the TWD to appreciate or depreciate against the USD.

• Economic growth: Taiwan's economy is expected to grow by 2.8% in 2023, according to the International Monetary Fund (IMF). This growth will be supported by strong exports and domestic demand. A stronger economy will lead to increased demand for the TWD, which could cause it to appreciate against the USD.
• Inflation: Inflation in Taiwan is expected to remain low in 2023, at around 1.5%, according to the IMF. This is below the inflation rate in the United States, which is expected to average 2.3% in 2023. A lower inflation rate in Taiwan could make the TWD more attractive to investors, which could cause it to appreciate against the USD.
• Interest rates: The Central Bank of Taiwan (CBT) has kept interest rates low in recent years to support economic growth. However, the CBT is expected to start raising interest rates in 2023, in line with the Federal Reserve. Higher interest rates in Taiwan could make the TWD more attractive to investors, which could cause it to appreciate against the USD.
• Political risks: Taiwan is facing a number of political risks, including the threat of invasion from China. These risks could lead to increased uncertainty and volatility in the TWD market.

Overall, the TWD is expected to fluctuate within a narrow range against the USD in 2023. However, there are a number of factors that could cause the TWD to appreciate or depreciate against the USD.

Historical Exchange Rate Data

The following table shows the historical exchange rate between the TWD and the USD:

Currency Trading

The TWD is traded on the foreign exchange market, and is available to trade through a variety of brokers and exchanges. The TWD is a popular currency for traders, due to its stability and liquidity.

Currency Conversion

The following table shows the TWD conversion rates for a number of major currencies:

Conclusion

The TWD is a stable and liquid currency that is widely traded on the foreign exchange market. The TWD is expected to fluctuate within a narrow range against the USD in 2023, but there are a number of factors that could cause it to appreciate or depreciate against the USD.