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The
central bank last month punished four foreign banks, including
Deutsche Bank for helping grains firms speculate in the
deliverable forwards foreign exchange market, as it moved to
slow the Taiwan dollar's rise.
Speaking on condition of anonymity, as they were not authorised
to speak to journalists, sources told Reuters that Cargill was
one of the main grains companies involved. The central bank has
not named Cargill in its communications on the matter.
The central bank declined to comment. Cargill did not
immediately respond to a request for comment outside regular
U.S. business hours.
The deal to get roughly $2 billion of funds due to Cargill and
one of its fully-owned subsidiaries out of Taiwan came after
eight months of negotiations with the central bank, sources
said.
The Taiwan dollar is at its highest in more than 23 years
against the U.S. dollar as the island's trade-dependent economy
booms on global demand for its tech products, fuelled by people
working from home amid the coronavirus pandemic.
Taiwan's central bank has been particularly concerned about
grain companies engaging in currency speculation through
deliverable forwards.
The central bank has previously said that starting from July
2019, eight grains trading companies ostensibly carrying out
routine currency transactions for their business had in fact
engaged in currency speculation, and as a result affected the
stability of Taiwan's foreign exchange market.
It put the total value of the trades at $11 billion.
(Reporting by Liang-sa Loh; Writing by Ben Blanchard; Editing by
Kenneth Maxwell)
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