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Taiwan's FSC, in insurance financial reporting rules published on February 5, 2026, will let life insurers straight-line amortize unrealized FX gains and losses on directly held amortized-cost debt instruments over remaining maturity from January 1, 2026, provided IAS 1 paragraph 19 conditions are met. This smooths reported earnings for insurers carrying large long-dated USD bond books, but with only 50.23% of exposure hedged the underlying currency mismatch stays intact, so a sharp TWD appreciation still drives real capital and hedging pressure rather than just accounting noise. Watch the hedge ratio trend and any surge in forward/NDF demand from Taiwan lifers, since that channel historically spills into broader Asian FX including USD/KRW and USD/JPY, and into marginal demand for long US Treasuries.
As a Forex signal, confirm the link to liquidity, rates, policy timing, and price reaction before drawing a trading conclusion.
Original Source: 토큰포스트
This page is market information analysis, not investment advice.
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