💵 Money | Strong Euro, Weak NTD Bad for Travel?

It’s one of Taiwan’s magic powers.

The impact of inflation in North America is wild, and not in a good way.

Guy

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So what does Taiwan do different that doesn’t result in Venezuela’s problem of shortage? Because socialist price control is seen as bad in every Western countries.

That Taiwan can even give everyone 6000nt without printing money is magical in itself.

Or it’s actually China money…

My sister told me inflation is nuts in the states. She said beef noodle previously cost about 14-15 dollars now costs 25 dollars or more.

In Taiwan it’s gone up like 10nt (from say 120nt to 130nt).

But we import a lot of food, so what’s going on?

Or is socialism not as bad as they say it is, if applied correctly?

Did you not realize that came from a budget surplus from increased tax receipts.? It was after announced in the news. Taiwan was not running US dollar trillion deficits like the USA.

It’s not like I don’t know that.

I don’t think any western country can do that at all. If they want to give their citizens money they will have to print them. It’s sad.

Especially you got that orange president who promised to balance the budget but instead made it much worse…

Bill Clinton was the last president who balanced the budget, but even he created a ton of problems too (not money related though).

Indeed they’ll have to print citizens. Birth rates are really low.

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Don’t they already have high immigration to resolve that?

Maybe that’s why the US turns a blind eye towards illegal immigration. They can’t tell their citizens to just let everyone in, so just do it on the down low and not enforce the law at all.

They have many fiscal and monetary tools. To the best of my understanding interest rates are the fastest acting and easiest to reverse and manage.

Yea, well, governments in the West seems powerless if corps decides that they can increase price across the board by 100% because they can. In the US corps control everything. Proctor and Gamble can raise prices by 100% if they want to, they have effectively no competitor. Same with many food companies and other companies. A lot of oligopolies in the US in fact.

Which tells me that governments in the west has little to no control over inflation.

Not sad in California, they refund to people NewT$290 billion from surplus like Taiwan’s extra cash, so not all of USA is poor

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In Italy now, bothers my Taiwanese co worker her Italian bags not as cheap with higher :euro: euro

Taxes are even faster. But, elected governments don’t like raising taxes.

Well, for one. Everytime you hear a person complain about how old school the banks in Taiwan are, remember we dont really have meaningful recessions. economies and banks are controlled lots here. untold quantity of grey area laws put on place to exactly allow pick n choose enforcement. for all the dumb fuckery around taiwan, we never really suffer like other countries. financially, I mean. our lungs and digestive organs, different story. but financially, sometimes it’s good going slow and steady and having actual government controls from foreign entities :slight_smile:

For better or worse. though more clear cut and active legal systems wouldnt be a bad thing…

we need a lower dollar. export relies on it. right now it seems only the US is up vs the TWD, all others are way low now. at least as forex.

Related:

In the latest report submitted to the U.S. Congress on Tuesday, the Treasury Department said it found that no major U.S. trading partner has manipulated exchange rates to get an unfair competitive edge in international trade during the four quarters through June 2023.

Taiwan remained on the watch list for currency manipulation, however, as did China, Malaysia, Germany, and Singapore, while Vietnam was newly added to the list, according to the report.
[…]
According to the report, Taiwan met the trade surplus and current account surplus criteria but estimated that “foreign exchange intervention was limited in the first half of 2023, consistent with muted currency movements.”

It advise Taiwan to “deploy a a careful mix of policies that better insulate the economy from external shocks and address structural issues to reduce external sector imbalances,” especially in terms of diversifying its energy imports.

It also said Taiwan’s “foreign exchange intervention should be limited and allow currency movements in line with economic fundamentals.”

Further weakening the NT$ by purchasing USD would probably not be seen positive by the US.

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Since I earn NTD, I am not opposed to its appreciation. :happy_frog:

Guy

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NT$ going down! Anyone try ATM’s in Taiwan that eject Euros, is rate close to market rates?

1US$ 32.53 this morning from HSBC Taiwan

Euro 106.3 to US$ weakening as well.

The rate is 35.1 to NT$, now wondering how strong Euro will get?

I thought all the western countries have stopped raising interest rate, so what gives with ntd getting weaker? Is it because everyone wants to abandon Taiwan?

The NTD has lost less ground relative to the USD than the Japanese yen and the Korean won. So no, this “everyone wants to abandon Taiwan” story is actually not a thing.

Guy

I think that might be part of it, but not all the reason its weaker. In Europe (and Japan) I do get asked if keeping Taiwan money is safe so there is some worry about it so there is that safe haven worry. Inside Taiwan it seems less fear of this, or the people that do worry have left or already converted currency.