Taiwan’s foreign exchange reserves stood at US$ 542.792 billion in October, ending a three-month streak of declines, the country’s central bank said Friday.
Data compiled by the central bank showed the country’s forex reserves increased by about US$1.685 billion from a month earlier to hit US$ 542.792 billion at the end of October.
Amid an aggressive rate hike cycle launched by the Federal Reserve that pushed up the U.S. dollar, Taiwan’s central bank converted large stockpiles of U.S. dollars into New Taiwan dollars to help prop up the value of the local currency in July, August, and September, according to the bank.
In October, given that there were no market forces that caused the exchange market to become one-sided, the central bank’s intervention in the market was mostly a two-way operation, said Tsai Chiung-min (蔡炯民), head of the bank’s Foreign Exchange Department.
As a result, the central bank’s intervention in the forex market in October did not have much impact on the balance of the foreign exchange reserves, Tsai added.
Taiwan’s forex reserves in September shrank by US$4.38 billion to reach US$541.11 billion, marking the steepest month-on-month decline in nearly 12 years and the lowest since April 2021, according to the bank.

Source: Focus Taiwan News Channel