Does Taiwan Have “Reverse” Dutch Disease? (Level 1)

Taiwan is a small island, but it makes most of the world's computer chips. Because of the new AI boom, everyone wants these chips. This is making Taiwan's economy grow very fast. Usually, when a country sells a lot of things, its money becomes more expensive. But Taiwan is different. Its money, the Taiwan dollar, is actually becoming cheaper. Why is this happening? In the past, Taiwan's central bank bought a lot of foreign money to keep the Taiwan dollar cheap. A cheap dollar helps them sell more chips to other countries. Later, the government asked life insurance companies to buy foreign money instead. This keeps the Taiwan dollar weak. Because the money is cheap, Taiwan sells much more than it buys. It makes a lot of money from other countries. This is a very special situation for a rich country.