Taiwan Names New Central Bank Governor

Yang Chin-long, Taiwan’s central bank deputy governor, is named as the country’s new central bank governor. He will be succeeding the bank’s governor Perng Fai-nan this month.

flag of Taiwan on Euros financial concept

Cabinet Spokesman Hsu Kuo-yung made the announcement during a briefing in Taipei on Thursday. Yang, currently 64, has been serving as the institution’s top deputy since 2008.

With Yang being appointed as the next governor, it was seen as Taiwan’s policymakers signaling that they are aiming for consistency and stability.

“As Yang has served as a deputy for a long time, I don’t expect any major change in Taiwan’s monetary and exchange rate policy – it’s a smooth succession,” said chief economist Raymond Yeung. “He has a good relationship with other central banks. That may be able to facilitate policy communication.”

Yang’s predecessor, Perng, held the position as governor for almost 20 years. He is also one of the longest-serving central bank governors in the world.

Perng has been known for helping steer the Taiwanese economy through the Asian financial crisis. Another was the tense cross-Strait relations and domesctic political crises. Aside from these, he also helped build up Taiwan’s foreign exchange services.

Under Perng’s reign, the central bank has continuously rebuffed allegations of the institution interfering in the currency markets to support Taiwan’s exporters.

Yang will be taking over on February 24, as was announced on Thursday.

ECB’s Coeure Commends Lane

European Central Bank board member Benoit Coeure praised Ireland’s candidate for the positions of ECB’s next vice-president. He was heard on Wednesday describing Philip Lane as an “outstanding economist” as well as a “good colleague”.

Investors are watching the appointment closely as it could affect the race to replace ECB President Mario Draghi in 2019.

Lane is a newly-joined competitor in succeeding Vitor Constancio as the ECB’s second-in-command in May. He can also win the support of France and other southern European countries over Spanish Economy Minister Luis de Guindos.

“Governor Lane, he’s an outstanding economist. He’s a good colleague on the Governing Council of the ECB,” Coeure said on TV. “Now, as you know, the ECB has a very limited role in that process. We’ll give an opinion at a later stage and it’s really a political discussion, that’s all what I can say.”

Despite Coeure’s praise, he pointed out the result of the selection process is still led by the euro zone governments.

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