Taiwan eyes US dollar dividends for listed firms, central bank sees exchange rate benefits

Taiwan's financial regulators are considering a significant shift in dividend distribution policies, with plans to allow listed companies to issue cash dividends in US dollars. The Financial Supervisory Commission (FSC) is reportedly aiming for the new system to be implemented as early as 2027. This potential change has already garnered support from major industry players, including Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest contract chipmaker. Central Bank Governor Yang Chin-long indicated on Tuesday that the initiative could offer benefits, specifically suggesting it might help mitigate fluctuations in the New Taiwan Dollar's exchange rate. The move aims to provide companies with greater flexibility in managing their finances and potentially attract foreign investment, while the central bank hopes it will contribute to a more stable currency market.