Taiwan’s forex reserves hit new high

Taipei-Taiwan's foreign exchange reserves climbed to a record high of US$446.42 billion at the end of August, up US$1.97 billion from the previous month, according to data released Tuesday by the central bank.

Central Bank of the Republic of China (Taiwan) attributed the increase in forex reserve growth in August mainly to returns on foreign exchange reserve investment.

Harry Yen (???), head of the central bank's Foreign Exchange Department, noted that the euro rose 0.67 percent against the U.S. dollar during the month, when the U.S. dollar index fell by 0.21 percent.

Yen said the strength of the euro, which is part of the central bank's forex portfolio, helped Taiwan's forex reserves grow in U.S. dollar terms after the bank converted the European currency into greenbacks.

At the same time, holdings of Taiwanese stocks and bonds by foreign investors rose US$4.3 billion in August from a month earlier to US$388.1 billion because of continued gains posted by Taiwan's forex market, the central bank said.

The foreign-held assets accounted for 87 percent of the total forex reserves in Taiwan at the end of August, it added.

Although foreign institutional investors recorded a net fund outflow of about US$2.93 billion in August, Yen said the inflow capital on Taiwanese stocks by foreign investors will continue this year, which will prevent any liquidity risks.

Source: Focus Taiwan News Channel