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Disruption in Forex cash market and pneumonia update

Writer's picture: jackychcjackychc

The Wuhan pneumonia has caused severe disruption on operation of money exchange bureau. For those still operating, the exchange rate spread has significantly increased or disrupted.

For example, Taiwan is one of the most popular tourist destination for Hong Kong people, resulting a constant demand of NTD cash in Hong Kong. The pneumonia outbreak resulted in Taiwan closing their border, hence the demand of New Taiwan Dollar dropped. The demand is nearly non-existent that multiple money exchanges are now selling NTD cash at HK$0.252 per NTD, or 2% discount to TT rate of NTD (HK$ 0.256 / NTD). Such discount is very unusual, as the money exchanges usually are selling at 2% premium or higher, depending on seasonal changes. I still rmb I withdrawal NTD cash from Taiwan few months ago and sell those NTD cash in Hong Kong, and earned 1% premium.


The spread of the coronavirus seems to have peaked in Italy and Spain (I spoke too soon last time). However, the new cases in Italy hasn't dropped significantly, it just flattened. It is very concerning because this implies the current lockdown and social distancing is not enough and requires extra measures.



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