Taiwan’s foreign exchange reserves last month shrank US$1.15 billion to US$547.81 billion, the second-lowest level this year as foreign capital continued to flow outward in search of better yields, the central bank said yesterday.
The latest balance put an end to two consecutive months of gains, and came after foreign portfolio managers raised stakes in local shares while wiring about US$8 billion to US$9 billion of cash dividends and investment gains abroad, Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) told an online news conference in Taipei.
The volume of capital outflow is the highest in four months, consistent with the US
The nation’s foreign exchange reserves last month increased by US$109 million to US$548.96 billion, rising for the second straight month, as demand for the local currency from exporters muted sell-off by foreign portfolio managers, the central bank said yesterday.
Financial Supervisory Commission (FSC) data showed US$2.54 billion in fund outflows last month, but the central bank observed a larger capital flight of US$5.19 billion after including capital gains, Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) told an online news conference in Taipei.
The pace did show signs of slowing last month, compared with March to May, Tsai said.
Fund outfows so far
Taiwan’s foreign exchange reserves last month picked up US$3.8 billion to US$548.5 billion, ending two months of decline, thanks to seasonal dividend income from bond holdings and value gains in non-US dollar reserve currencies, the central bank said yesterday.
The latest balance indicated that Taiwan retained its status as the world’s fourth-largest foreign reserve holder after China, Japan and Switzerland, after overtaking India in April.
“The central bank’s holdings in US government bonds received a boost from seasonal dividend incomes and value advances in major reserve currencies other than the greenback,” Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) told a news
Taiwan’s foreign exchange reserves declined by US$1.22 billion to US$548.77 billion last month, the first retreat in eight months, due primarily to capital flight and interventions by the central bank to stabilize the local currency.
Foreign outflows totaled US$12 billion, accounting for a 2.05 percent fall in the New Taiwan dollar versus the US dollar, Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) told reporters.
Local life insurance companies also contributed to the trend, as they pursued higher returns in overseas markets, Tsai said.
Global financial institutions are re-evaluating their investment portfolios and making adjustments in the hope of taking advantage of interest
Taiwan’s foreign exchange reserves last month rose by US$466 million to a record US$548.87 billion, as exporters offloaded US dollars and local investors raised stakes in US dollar-based assets ahead of anticipated interest rate hikes, the central bank said yesterday.
The nation’s foreign exchange reserve rose for the sixth consecutive month thanks to robust demand from companies and organizations around the world for Taiwan-made electronics needed to drive digital transformation, Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) said.
Strong exports explain why the New Taiwan dollar appreciated in the past two years, Tsai said, adding that US Federal Reserve’s money-printing program