Taiwan's central bank is considering rules that will prevent foreign investors from frequently switching currency preferences when receiving U.S. dollar dividends from companies such as Taiwan Semiconductor Manufacturing (TPE:2330), Reuters reported Thursday.

Citing three sources familiar with the matter, the news agency said that under the proposal, investors may only be allowed to change their selection once a year, according to people familiar with the matter.

The discussion follows a recent policy shift allowing listed Taiwanese firms to distribute foreign-currency dividends to overseas shareholders, with custodians preparing systems to support the change.

Taiwan Central Bank has not issued an official comment, while TSMC has said it supports the policy direction and will review arrangements once details are finalized. Implementation is expected to begin next year, the report said.

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