In response to the recent surge of the New Taiwan dollar, caused by an attack on the currency allegedly linked to international finance speculator George Soros, the Financial Supervisory Commission has already set up a special task force, trying to restore order in the market as soon as possible.

Following a three-hour Board of Directors and Supervisors meeting, Central Bank of the Republic of China Governor Perng Fai-nan announced that the Central Bank would be raising its benchmark interest rates by .125 percentage points on the final day of trading in 2010.

This was the third interest rate hike of the year. The Bank also decided to make Sanhsia, Linkou, and Danshui special property buying zones and lower the mortgage loan-to-value ratio for multiple residences from 70% to 60%.

Central Bank sources, meanwhile, accused currency speculator George Soros of using two foreign banks to carry out coordinated attacks on the NT Dollar by dumping hot money in the nation's foreign exchange market on December 29th.

Perng says that the Financial Supervisory Commission has set up a task force to investigate and prevent future attacks, and further stated that the Central Bank would no longer set the exchange rate line at NT$ 30 to US$ 1.

However, Perng may be facing tough challenges ahead as the NT Dollar continues to appreciate.