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Just want to reinforce a point that @stwill1 made earlier today -- our blogs laying out the case (now confirmed) that Taiwan's central bank had a large forward position are now available as a paper / .pdf
1/3
https://www.cfr.org/sites/default/files/pdf/shadow-fx-intervention-in-taiwan-solving-a-usd-100-bn-enigma.pdf
1/3
https://www.cfr.org/sites/default/files/pdf/shadow-fx-intervention-in-taiwan-solving-a-usd-100-bn-enigma.pdf
That paper provided by basis of my Oddlots interview on Taiwan's lifers and the CBC's (at the time) hidden forward book. That interview is probably the best introduction to the issue ...
2/3 https://www.bloomberg.com/news/audio/2019-10-25/the-great-whodunit-of-taiwanese-life-insurers-podcast
2/3 https://www.bloomberg.com/news/audio/2019-10-25/the-great-whodunit-of-taiwanese-life-insurers-podcast
Disclosure of the CBC's forward book (and less frequent disclosure of its fx deposit with the domestic banks) hasn't eliminated all the mysteries around the TWD -- including the CBC's motivation for intervening in the final hour of onshore trading
3/3 https://concentratedambiguity.wordpress.com/2020/08/21/revisiting-taiwan-new-disclosures-pricey-hedges-late-day-jumps-a-new-policy-direction/
3/3 https://concentratedambiguity.wordpress.com/2020/08/21/revisiting-taiwan-new-disclosures-pricey-hedges-late-day-jumps-a-new-policy-direction/
The pandemic has changed many things. But one thing has remained constant -- the seemingly inexorable march up to the combined foreign assets of Taiwan's central bank and its lifers ....
(a bonus chart for readers of this thread)
(a bonus chart for readers of this thread)
