$Taiwan Semiconductor(TSM.US)
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On the last day of the domestic holiday, TWD experienced significant fluctuations, which also affected other Asian currencies; impacting the Korean won, Malaysian ringgit, and Singapore dollar.
From social media, several major Asian banks held emergency meetings today. The sharp rise in TWD directly affects the local insurance industry, as Taiwanese life insurance companies have mismatched a large amount of USD assets.
Taiwan's foreign exchange reserves are $1.7 trillion (mostly in US bonds), equivalent to over 200% of its GDP, with about $1 trillion held by life insurance companies.
Undoubtedly, if TWD continues to strengthen, Taiwan's local financial stability will be greatly affected.
Will Taiwan's financial industry bomb? Possibly this week.
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