Central bank pumps $600M to keep markets open amid typhoon.

As Typhoon Jangmi, a moderate to severe storm, approached Taiwan this year, multiple counties and cities across the island declared work and school suspensions, allowing many residents to shelter at home. However, the international financial markets, which drive the global economic pulse, did not pause for Taiwan’s inclement weather; capital flows and settlements continued to operate with minute-by-minute precision in global capital markets. During this test of natural disaster resilience, the Central Bank of the Republic of China (Cental Bank) demonstrated high adaptability and the robustness of its financial defense line. It declared that it would “remain open during typhoon days,” stationing staff in its offices to handle international financial transactions and related settlement businesses, ensuring that domestic financial institutions would not face a break in the chain of operations when managing international fund allocations due to domestic holidays.

According to statistical data released by the Central Bank this evening, to meet the actual funding needs of domestic foreign exchange designated banks and overseas branches of local banks, the Central Bank provided a total of US$585 million in foreign currency to the market on that day. This substantial injection of foreign currency liquidity was primarily distributed precisely to financial institutions in need through various currency financing and allocation mechanisms. The fundamental purpose of this measure was to assist domestic banks in fulfilling their settlement obligations to foreign financial institutions and maintaining the normal operation of the entire banking system, thereby mitigating potential liquidity risks, even while the rest of the country was observing typhoon holidays.

From a practical financial operations perspective, the foreign exchange and international capital markets constitute a vast, networked structure that operates without time zone limits and never closes. When Taiwan observes a holiday due to a typhoon, major international financial centers such as New York, London, and Tokyo continue their regular operations. Cross-border corporate remittances, payments for international trade goods, debt repayments among financial institutions, and settlements of derivative financial products do not pause because a local government in Taiwan declares a suspension of work and school. If the Central Bank and commercial banks in Taiwan were to cease operations entirely during a typhoon, domestic banks’ overseas fund allocations and settlements would come to a halt. This could not only lead to default risks but also severely damage the credit rating and reputation of Taiwan’s financial markets on the international stage.

For this reason, the Central Bank has established a comprehensive emergency response mechanism and standard operating procedures (SOP) for typhoon day retention operations. Whenever the Central Weather Bureau issues a landfall typhoon warning and certain areas declare work and school suspensions, the Central Bank’s Foreign Exchange Bureau and relevant business units activate established procedures. They assess the opening status of international financial markets and the actual needs of domestic banks, and assign core business personnel to report to work and remain on duty despite the storm. Under strict safety precautions, these retained staff maintain close communication with major foreign exchange designated banks via secure communication networks, handling the lending, transfer, and settlement confirmation of foreign currency funds in real time, acting as the steady, behind-the-scenes helmsmen guiding Taiwan’s financial system through the storm.

The Central Bank’s successful allocation of nearly US$600 million in foreign currency funds during Typhoon Jangmi’s passage not only highlights the strength of the nation’s foreign exchange reserves but also proves the Central Bank’s high sense of responsibility in maintaining financial stability. For the general public, a typhoon day may simply mean an extra holiday or time for storm preparation; however, for financial professionals and Central Bank officials, it is a defensive battle fought without gunfire. Through timely and sufficient foreign currency funding support, domestic banks were able to maintain their footing in the waves of international finance, ensuring that Taiwan’s external trade and financial momentum would not be interrupted by natural disasters, thereby building a solid protective wall for the nation’s overall economic resilience.

(Source: Central News Agency)