The NTD can take the devaluated policy to raise the Taiwanese export trade, the former President Teng-Hui Lee said. Unfortunately, the NTD policy shall affect the raw materials of Taiwanese import, steel industry and petrochemical industry, for examples. About two years ago, the President of Venezuela was the first man to propose the devaluated policy. I think Venezuela is fully different from Taiwan, and particularly Venezuela is the most important crude oil country in the South America.
Before Taiwan understands Venezuela, the first matter is to know the crude oil holds the 80% export trade of Venezuela. If Taiwan takes the devaluated policy, all of the so-called Supply Chains shall be affected in the later half year. After the supply chains raise the price of goods, the manufacturers are possible to change the supply objectives. Of course, the manufacturers can postpone the time to raise the price, but they must accept the new price from the supply chain finally. I think the devaluated policy won't be longer than one year, and Taiwanese government shall pay high cost for this currency policy.
The manufactures always take the departmental selfishness, and they are very easy to forget their partners who are the supply chains in professional term. Besides, Taiwan and mainland China choose USD as the exchange currency, not NTD or RMB. If the devaluated policy is implemented, part of Taiwan's dependence industry may disappear. I think the unemployment rate is just about 4.1%, so that Taiwan doesn't need the devaluated policy to undertake the risks.
References
Before Taiwan understands Venezuela, the first matter is to know the crude oil holds the 80% export trade of Venezuela. If Taiwan takes the devaluated policy, all of the so-called Supply Chains shall be affected in the later half year. After the supply chains raise the price of goods, the manufacturers are possible to change the supply objectives. Of course, the manufacturers can postpone the time to raise the price, but they must accept the new price from the supply chain finally. I think the devaluated policy won't be longer than one year, and Taiwanese government shall pay high cost for this currency policy.
The manufactures always take the departmental selfishness, and they are very easy to forget their partners who are the supply chains in professional term. Besides, Taiwan and mainland China choose USD as the exchange currency, not NTD or RMB. If the devaluated policy is implemented, part of Taiwan's dependence industry may disappear. I think the unemployment rate is just about 4.1%, so that Taiwan doesn't need the devaluated policy to undertake the risks.
References
- 鄭閔聲、沈婉玉(2012.05.24)李登輝:放手讓台幣貶到34元,中國時報,http://news.chinatimes.com/focus/11050105/112012052400091.html
- DGBAS, http://eng.dgbas.gov.tw