The hidden risks in Taiwan’s boom

A weak-currency policy is punishing consumers and storing up financial risk

Taiwan is ENVIED for its exporting prowess: it is home to all of the world’s cutting-edge chipmaking. Just as extraordinary, but much less appreciated, is its towering current-account surplus, the result not just of a trade boom but of a long-undervalued currency. This aided Taiwan’s export-led rise, but it has long outlived its purpose. While manufacturers have been coddled, ordinary Taiwanese consumers have been deprived of the fruits of growth, and financial risks are building up. It is time for Taiwan to loosen its grip on its currency.

This article appeared in the Leaders section of the print edition under the headline “The hidden risks in Taiwan’s boom”

From the November 15th 2025 edition

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