Taiwan punishes Deutsche Bank in currency speculation case

TAIPEI: Taiwan’s central bank said on Sunday it had banned Deutsche Bank from trading Taiwan dollar deliverable and non-deliverable forwards and suspended it for two years from trading forex derivatives as part of a crackdown on speculation. The Taiwan dollar is at a more than 23-year-high against the US dollar as the island’s trade-dependent economy booms on global demand for its tech products as people work from home The central bank has been particularly concerned about a case where it said foreign banks helped grain companies engage in currency speculation through deliverable forwards, affecting the stability of Taiwan’s foreign exchange market. Sources said that the central bank had sent letters outlining punishments to Deutsche Bank, Citigroup Inc, ING and Australia and New Zealand Banking Group Ltd (ANZ) for their involvement. — Reuters