Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

UPDATE 3-Taiwan punishes Deutsche Bank, others in currency speculation case

Published 07/02/2021, 05:32 pm
Updated 08/02/2021, 02:00 pm
© Reuters.
C
-
INGA
-
DBKGn
-
ANZ
-

(Adds Deutsche comment)

TAIPEI, Feb 7 (Reuters) - Taiwan's central bank said on Sunday it had banned Deutsche Bank DBKGn.DE from trading Taiwan dollar deliverable and non-deliverable forwards and suspended it for two years from trading forex derivatives as part of a crackdown on speculation.

The Taiwan dollar TWD=TP is at its highest in more than 23 years against the U.S. dollar as the island's trade-dependent economy booms on global demand for its tech products fuelled by people working from home.

The central bank has been particularly concerned about a case where it said foreign banks helped grain companies engage in currency speculation through deliverable forwards, affecting the stability of Taiwan's foreign exchange market. told Reuters on Friday that the central bank had sent letters outlining punishments to Deutsche Bank, Citigroup Inc (NYSE:C) C.N , ING INGA.AS and Australia and New Zealand Banking Group Ltd (ANZ) ANZ.AX for their involvement. from the punishment for Deutsche Bank's Taipei branch, the central bank said in statement that ING and ANZ's Taipei offices would not be allowed to trade Taiwan dollar deliverable and non-deliverable forwards for nine months.

Citi's Taipei office would be suspended from trading Taiwan dollar deliverable forwards for two months, it added.

A Deutsche Bank spokesperson said: "We are working closely with the CBC and our clients to ensure that FX transactions involving the Taiwan Dollar have a genuine underlying need, and remain committed to playing a constructive role in the ongoing development of Taiwan's capital markets."

Citi and ANZ declined to comment. Representatives for ING did not respond to a request for comment.

The punishments will come into effect on Monday, the central bank said.

Eugene Tsai, head of the central bank's foreign exchange department, told Reuters that transactions made by the banks in accordance with the rules before Friday had been completed on schedule.

He added that the punishment against Deutsche meant it would not be able to trade forex options or swaps.

The central bank announced its probe into the case last month, which it said involved eight grain-trading companies.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.