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The exchange rate between the New Taiwan Dollar (TWD) and the Swiss Franc (CHF) has experienced notable fluctuations over the past few months. This report provides an analysis of the TWD/CHF exchange rate trends, examining the factors influencing these movements and offering insights into potential future developments.

Recent Exchange Rate Trends

In early 2025, the TWD/CHF exchange rate exhibited a downward trend. On February 11, 2025, the rate peaked at 0.02782 CHF per TWD. By March 6, 2025, it had declined to 0.02686 CHF per TWD, marking the lowest point during this period. This represents a depreciation of approximately 3.4% over this timeframe. (exchange-rates.org)

The average exchange rate from February 17 to March 16, 2025, was 0.02715 CHF per TWD. During this period, the highest recorded rate was 0.02765 CHF, and the lowest was 0.02662 CHF. (investing.com)

Factors Influencing the Exchange Rate

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

1. Economic Indicators: Taiwan's economic performance, including GDP growth, export figures, and manufacturing output, directly impacts the strength of the TWD. Similarly, Switzerland's economic health, characterized by its financial services sector and export economy, influences the CHF. Disparities in economic performance between the two countries can lead to exchange rate adjustments.

2. Monetary Policies: The monetary policies of the Central Bank of the Republic of China (Taiwan) and the Swiss National Bank play crucial roles. Interest rate decisions, quantitative easing measures, and other policy tools affect investor confidence and capital flows, thereby impacting the exchange rate.

3. Global Market Sentiment: As a safe-haven currency, the CHF often appreciates during periods of global economic uncertainty. Conversely, the TWD is more sensitive to regional economic developments, particularly in Asia. Shifts in global risk appetite can therefore influence the TWD/CHF exchange rate.

4. Trade Relations: Taiwan's export-driven economy means that changes in international trade dynamics, such as tariffs, trade agreements, and demand for technology products, can affect the TWD. Switzerland's trade relations, particularly in pharmaceuticals and financial services, also impact the CHF.

Comparative Historical Perspective

Comparing the recent exchange rate trends to previous years provides additional context. In 2022, the TWD/CHF exchange rate remained relatively stable, averaging around 0.033 CHF per TWD. This stability was attributed to balanced economic growth and monetary policies in both countries. (freecurrencyrates.com)

However, in 2024, the exchange rate experienced more volatility. For instance, in August 2024, the rate fluctuated between 0.02599 and 0.02702 CHF per TWD, with an average of 0.02658 CHF. This period of fluctuation was influenced by global economic uncertainties and shifts in trade policies affecting both Taiwan and Switzerland. (exchange-rates.org)

Future Outlook

Predicting future exchange rate movements involves considering various economic indicators and potential geopolitical developments. Key factors to monitor include:

• Economic Performance: Continued monitoring of GDP growth rates, employment figures, and trade balances in both Taiwan and Switzerland will provide insights into potential currency strength.

• Monetary Policy Decisions: Announcements from the Central Bank of the Republic of China and the Swiss National Bank regarding interest rates and other monetary policies will be critical.

• Global Economic Climate: Developments such as changes in global trade policies, economic growth in major economies, and geopolitical events can influence investor sentiment and currency valuations.

• Inflation Rates: Differences in inflation rates between Taiwan and Switzerland can affect the real exchange rate, influencing trade competitiveness and capital flows.

Given the complexities of currency markets, it is advisable for businesses and investors engaged in TWD/CHF transactions to stay informed about these factors and consider hedging strategies to mitigate potential risks.

In conclusion, the TWD/CHF exchange rate has shown variability influenced by a combination of economic indicators, monetary policies, and global market sentiments. Staying attuned to these factors will be essential for anticipating future movements in this currency pair.