The Taiwanese central bank left its policy discount interest rate unchanged at 1.25 percent — an historical low — at its quarterly policy meeting. The Bank had lowered rates seven times since last September, with total rate cut of 237.5 basis points. The Bank noted that while the global economic outlook remains uncertain, there have been gathering signs that the previous sharp slide in economic activity may have begun to stabilize, as seen in recent improvement in export orders for selected industries; generally positive response to the government's shopping coupon program, improving tourist inflows and the stabilizing stock market. It said that Taiwan's financial system remains stable with abundant liquidity.
As think about this, the more I do not agree with those, who say that US dollar is not a safe heaven any more and now the most safe strategy to keep your life savings are in NTD or more extreme - Japan Yen's. It's truth that you should keep a part, and big part of your savings where your mouth is - in our case it's NTD. But how safe it is now, considering that rates are so low and current government are considering to print more money looking on big brother FED, who seems are using all printers available to suck up all toxic assets laying down and stinking in US banks now. What I want to say, for those, who say - hey, US is printing money and you see, their inflation is still down (it's truth, latest PCE figures are well below FED comfort zone), so why not keep NTD rate close to zero print money, coupons - it won't make any inflation risks and will stimulate the anemic economy growth.
What those analysts forget, it's a fact that not NTD, and not JPY is a world currency, and still about 80 % of international transactions are done in USD. And when someone smart enough approaches me to say, hey, think about US exports, they are down, and asks me name at least one USA commodity I own (and smiling expecting me say, that wow, yeah, I drive japanese car, and I wear china made jeans) - i look at this person and say - I can name you a product that US exports and everyone of us use it and will use it in foreseen future - green-bucks.
USA and leaders of this country are smartest nation so far in world, and one can hate them or praise them or whatever, while we use US dollar, while we learn and copy their marketing strategies, while we use their online marketing platforms, pay per click management systems and while we use english language after all - US dollar will be better choice to keep savings. Because besides the US dollar, USA is also exporting inflation to everyone in world. It's Taiwan dollar, and it's EUR and Ukrainian Hrivne who takes inflation instead of US dollar. If you don't believe me check UK Pound against US Dollar. If you check US and UK fundamentals, like GDP growth they are not so different - both are down. US dollar remains as currency number one yet, while a motorcycle taxi driver in Lao is accepting it as a money. Try pay them in NTD or EUR.
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