According to statistics compiled by Taiwan's Central Bank of China, the average daily foreign exchange trading volume reached the second highest level in history at US$14.16 billion in Jan. 2006. CBC said the volatility of the New Taiwan dollar against the U.S. dollar reached 23.32% in January, higher than the 20.58% recorded in the previous month.

According to an industry source, the high volatility of TWD against the U.S. dollar could be attributed to the frequent flow of forex, as local people remitted money outward, while foreign investors remitted funds into Taiwan to invest in the domestic bourse. Another factor is the increasing expectations that the U.S. Federal Reserve would slow down its interest-rate increases.