Exchange Rate Calculator

The exchange rate between the Canadian Dollar (CAD) and the New Taiwan Dollar (TWD) has experienced notable fluctuations over the past several months. This report provides an analysis of the CAD/TWD exchange rate trends, key influencing factors, and potential future outlooks.

Recent Exchange Rate Trends

Over the six-month period from September 2024 to March 2025, the CAD/TWD exchange rate exhibited a downward trend. The highest rate recorded was 23.772 TWD per CAD on October 4, 2024, while the lowest was 22.635 TWD per CAD on December 18, 2024. The average exchange rate during this period was approximately 23.053 TWD per CAD.

In the first quarter of 2025, the exchange rate continued to show variability. For instance, on March 28, 2025, the rate stood at 23.1746 TWD per CAD, marking a 0.22% increase from the previous day.

Factors Influencing the Exchange Rate

Several factors have contributed to the fluctuations in the CAD/TWD exchange rate:

1. Economic Indicators: Differences in economic performance between Canada and Taiwan, such as GDP growth rates, inflation, and employment figures, can impact currency valuations. For example, if Taiwan's economy grows at a faster pace than Canada's, the TWD may strengthen against the CAD.

2. Interest Rate Differentials: The monetary policies of the Bank of Canada and the Central Bank of the Republic of China (Taiwan) influence interest rates. Higher interest rates in Taiwan relative to Canada can attract investors seeking better returns, thereby increasing demand for the TWD.

3. Commodity Prices: Canada's economy is heavily reliant on commodities like oil and natural gas. Fluctuations in global commodity prices can affect the CAD's value. A decline in oil prices, for instance, can weaken the CAD against other currencies, including the TWD.

4. Trade Relations: The trade balance between Canada and Taiwan also plays a role. A trade surplus in Taiwan's favor can lead to increased demand for the TWD, appreciating its value relative to the CAD.

5. Global Economic Events: Geopolitical tensions, global financial crises, and other international events can lead to risk aversion among investors, impacting currency exchange rates. In such scenarios, investors might favor the TWD over the CAD or vice versa, depending on perceived stability.

Future Outlook

Forecasting exchange rates involves considerable uncertainty due to the multitude of influencing factors. However, some projections can be made based on current trends and economic indicators.

According to some forecasts, the CAD/TWD exchange rate is expected to be around 22.53 TWD per CAD by September 20, 2025, and approximately 23.53 TWD per CAD by September 20, 2029.

It's important to note that these projections are subject to change based on unforeseen economic developments, policy changes, and global events.

Conclusion

The CAD/TWD exchange rate has shown a general downward trend over the past several months, influenced by various economic indicators, interest rate differentials, commodity prices, trade relations, and global events. While some forecasts suggest a slight appreciation of the TWD against the CAD in the near future, exchange rates are inherently volatile and influenced by a complex interplay of factors. Stakeholders should monitor ongoing economic developments and consult multiple sources when making financial decisions related to currency exchange.