Financial Supervisory Commission seeks to prevent currency bubble after discovering foreigners parking $15.5bln in time deposits.
Taiwan's financial watchdog announced capital controls on Tuesday by stopping foreign investors from putting money into time deposits to curb what the authority calls currency speculation.
The Financial Supervisory Commission announced the immediate ban after the central bank said in October that foreign investors have parked about T$500 billion ($15.5 billion) in Taiwan dollar accounts.
"If foreign funds want to invest in Taiwan, they should. Otherwise they shouldn't be here," said Lu Ting-chieh, chief secretary of the Financial Supervisory Commission, in a report in Forbes.
The ban reflects concern among policymakers in some emerging markets that the inflow of hot money could create asset price bubbles and boost their currencies to uncompetitive levels.
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