Taiwan Looks to Carlyle Group to Stabilize Currency

The Carlyle Group may help Taiwan stabilize its currency by exchanging the $1.3 billion in Taiwan dollars the buyout shop received from the sale of its Kbro cable TV unit, Reuters said. Recently, Taiwan’s central bank has been battling surges in the currency, and intervening at the end of each day to bring the currency down, Reuters said.

(Reuters) – Taiwan’s central bank is hoping for a little help in its battle to keep the lid on rises in the local currency when private equity firm Carlyle converts the proceeds of its sale of a local TV unit.

The central bank’s forex chief Stephen Lin said on Tuesday that Carlyle has been given permission to exchange some $1.3 billion worth of Taiwan dollars after the sale of its Kbro cable TV unit. This could help stabilise the market, Lin said.

Taiwan’s central bank has been waging a running battle against surges in the currency as it seeks to protect the island’s exporters, intervening at the end of each day to bring the currency down.

In recent sessions the Taiwan dollar has reached 13-year highs, sometimes showing daily rises of over 2 percent, but has usually closed little changed. On Tuesday it rose as much as 2.5 percent before ending flat.

Without the intervention the currency would have risen some 7 percent this year, putting it among the top gainers in regional peers and threatening to crimp profits at exporters.

One dealer said the Carlyle cash had already been talked about in the market, but the speed that the central bank acted was a surprise. Most thought it would not give permission for the conversion until next year.

“The central bank has really whipped the horse along this time,” the dealer said. ($1=T$30.6) (Reporting by Jeanny Kao; Writing by Faith Hung; editing by Jonathan Standing and Patrick Graham)