06 May '25

Chunghwa Telecom Navigates Taiwan Dollar Surge with Strategic Financial Maneuvers

Chairman Chien Chih-cheng Asserts Company's Resilience Against Currency Fluctuations

TAIPEI (Taiwan News) – Chunghwa Telecom, under the leadership of Chairman Chien Chih-cheng (簡志誠), has announced that the recent rapid appreciation of the Taiwan dollar against the US dollar is unlikely to significantly impact the company's financial performance.

The Taiwan dollar commenced trading on Tuesday at NT$30.125 per US dollar, prompting market speculation regarding potential foreign exchange losses, particularly for export-dependent industries. However, Chairman Chien addressed these concerns by emphasizing Chunghwa Telecom's proactive strategies to manage currency risk.

“Chunghwa Telecom employs robust hedging mechanisms for US dollar-denominated equipment purchases and investments,” Chien stated following a seminar focusing on advancements in high-speed internet and AI technology. He further elaborated, stating that “our international subsidiaries also transact in US dollars, allowing gains and losses from currency exchange to largely balance each other out.”

He clarified that the company’s expenditures on foreign equipment represent a relatively small proportion of its overall spending. Furthermore, Chunghwa Telecom’s US-based subsidiaries conduct all their business in US dollars, which further mitigates the impact of exchange rate volatility.

Addressing the company’s investments in submarine cables and satellite infrastructure, also priced in US dollars, Chien explained that payments are structured over time, rather than as single large sums. These expenses are also a minor component of Chunghwa's overall financial obligations, thereby minimizing the potential effects of currency fluctuations.

By employing these comprehensive financial strategies, Chunghwa Telecom expresses confidence in its ability to maintain stable operations, even in the face of currency market volatility.

Other Versions

Justice • 08 Apr '25

A life in Taiwan

Chunghwa Telecom Navigates Taiwan Dollar Surge with Strategic Financial Maneuvers

Chairman Chien Chih-cheng Asserts Company's Resilience Against Currency Fluctuations

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