TAIPEI (Reuters) – Taiwan’s central bank said on Sunday it had banned Deutsche Bank from trading deliverable and non-deliverable forwards in Taiwan and suspended it for two years to trade forex derivatives as part of a crackdown on speculation. .
The Taiwanese dollar is at a high of more than 23 years against the US dollar as the island’s trade – dependent economy grows in global demand for technological products while people work from home. The central bank is particularly concerned about a case in which foreign banks help grain companies speculate currency through deliverable forwards, affecting the stability of Taiwan’s foreign exchange market.
Sources told Reuters on Friday that the central bank had sent letters punishing Deutsche Bank, CitigroupInc, ING and Australia and New Zealand Banking Group Ltd (ANZ) for their involvement.
Apart from the punishment for the Deutsche Bank branch in Taipei, the central bank said in a statement that ING and ANZ’s offices in Taipei could not be allowed to trade predictable and non-deliverable forwards in Taiwan for nine months. not.
Citi’s office in Taipei will be suspended for two months to trade predictable forwards in Taiwan, he added.
Citi and ANZ declined to comment. Representatives of the other two banks did not immediately respond to a request for comment.
The penalties will take effect Monday, the central bank added.
Eugene Tsai, head of the central bank’s foreign exchange division, told Reuters that transactions that the banks had done according to the rules before Friday had been completed according to schedule.
He added that the penalty against Deutsche means it will not be able to trade forex options or exchanges.
The central bank announced last month its investigation into the case, which he said involved eight grain trading companies.
Reporting by Liang-sa Loh and Ben Blanchard; Edited by Christian Schmollinger and Kim Coghill