Taiwan’s foreign exchange reserves reached a new high of US$573.3 billion by the end of last month, driven by increased returns from the central bank’s investment portfolio and exchange movements of non-US dollar currencies. This marks the second consecutive month of growth in foreign exchange reserves.
Foreign investors’ holdings of Taiwanese equities, bonds, and NT dollar-denominated deposits also soared to a record high of US$837.1 billion amidst a booming equity market. The central bank noted that the US dollar index rose 1.14 percent last month, while the NT dollar depreciated by 0.21 percent against the greenback.
Despite volatility in other major currencies, the NT dollar remained resilient, with limited intervention from the central bank. Director-General Tsai Chiung-min emphasized that the high holdings by foreign investors reflected the bullish trend in Taiwan’s stock market, particularly fueled by enthusiasm surrounding artificial intelligence.
Taiwan is ranked as the world’s fifth-largest holder of foreign exchange reserves, following China, Japan, Switzerland, and India. China, holding the largest reserves, experienced a decrease to US$3.222 trillion due to downward pressure on the yuan against the strengthening US dollar.
Overall, Taiwan’s robust foreign exchange reserves and foreign investors’ enthusiasm in the market indicate a positive outlook for the country’s economy and its attractiveness to global investors.
Frequently Asked Questions (FAQs) Related to the Above News
What contributed to Taiwan's record high foreign exchange reserves?
Taiwan's record high foreign exchange reserves were driven by increased returns from the central bank's investment portfolio and exchange movements of non-US dollar currencies.
What was the main factor behind the surge in foreign investors' holdings of Taiwanese assets?
The booming equity market in Taiwan was the main factor behind the surge in foreign investors' holdings of Taiwanese equities, bonds, and NT dollar-denominated deposits.
How did the US dollar index and NT dollar movement influence Taiwan's foreign exchange reserves?
The US dollar index rose by 1.14 percent last month, while the NT dollar depreciated by 0.21 percent against the greenback, contributing to Taiwan's foreign exchange reserves growth.
Why did Taiwan's foreign exchange reserves increase while China's decreased?
Taiwan's foreign exchange reserves increased due to strong returns and market enthusiasm, whereas China's reserves decreased as a result of downward pressure on the yuan against the strengthening US dollar.
What do Taiwan's robust foreign exchange reserves and foreign investors' enthusiasm indicate for the country's economy?
Taiwan's robust foreign exchange reserves and foreign investors' enthusiasm indicate a positive outlook for the country's economy and its attractiveness to global investors.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
