Taiwan's central bank punishes Deutsche, ING, ANZ on currency speculation

They are not allowed to trade Taiwan dollar deliverable, non-deliverable forwards for a time.

Taiwan’s central bank has banned Deutsche Bank from trading Taiwan dollar deliverable and non-deliverable forwards and has suspended the bank for two years from trading forex derivatives as part of its crackdown on currency speculation, reports Reuters.

The Central Bank of the Republic of China (Taiwan) (CBC) has reportedly been 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 told Reuters on 5 February that the central bank sent letters outlining punishments not just to Deutsche Bank, but also to Citigroup, ING, and the Australia and New Zealand Banking Group Ltd (ANZ) for their involvement.

Apart from the punishment for Deutsche Bank’s Taipei branch, CBC said in statement that ING and ANZ’s Taipei offices would not be allowed to trade Taiwan dollar deliverable and non-deliverable forwards for nine months.

Here’s more from Reuters.

Photo courtesy of Wikimedia Commons.