Taiwan may limit foreign currency dividend switches
Taiwanese authorities plan to restrict how often foreign investors can change their currency preference for dollar-denominated dividends. The central bank is currently leaning toward allowing changes only once a year to maintain market stability and simplify administrative processes.
Taiwan plans to restrict foreign investors from frequently switching between currency denominations for dividends paid by companies like TSMC. The central bank is leaning toward allowing currency selection changes only once per year. The policy follows a Financial Supervisory Commission decision in April to permit listed companies to pay foreign shareholders in U.S. dollars.
### Managing the Shift to Dollar Dividends The central bank's proposal aims to prevent volatility by ensuring investors do not switch frequently between the New Taiwan dollar and foreign currencies. Three sources familiar with the matter said foreign custodian banks are willing to cooperate with these new rules for dollar-denominated payouts.
