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Taiwan punishes Deutsche Bank, others in currency speculation case

Reuters
·1 min read

TAIPEI, Feb 7 (Reuters) - Taiwan's central bank on Sundaysaid it had banned Deutsche Bank from trading Taiwandollar deliverable and non-deliverable forwards and suspendedthem for two years from trading forex derivatives as part of acrackdown on speculation.

The Taiwan dollar is at a more than 23-year-highagainst the greenback as the island's trade-dependent economybooms on global demand for its tech products.

The central bank has been particularly concerned about acase where it said foreign banks helped grains companies engagein currency speculation through deliverable forwards, affectingthe stability of Taiwan's foreign exchange market.

Sources told Reuters on Friday that the central bank hadsent letters outlining punishments to Deutsche Bank, CitigroupInc, ING and Australia and New Zealand BankingGroup Ltd (ANZ) for their involvement.

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

Citi's Taipei office would be suspended from trading Taiwandollar deliverable forwards for two months, it added.

Citi declined to comment. Representatives for the otherthree banks did not immediately respond to a request forcomment.

The punishments will come into effect on Monday, the centralbank added.

The central bank announced its probe into the case lastmonth, which it said involved eight grain-tradingcompanies.(Reporting by Ben Blanchard; Editing by Christian Schmollinger)