Taiwan’s foreign exchange reserves fell in July | Taiwan News
TAIPEI (Taiwan News) – In response to recent fluctuations in the world’s major currencies against the US dollar, such as the euro and Japanese yen, Taiwan saw its foreign exchange reserves contract in July.
The Central Bank of Taiwan announced on Thursday (August 5th) that total foreign exchange reserves fell by NT $ 5.7 billion (US $ 206 million) last month to a total of just over 15.1 trillion. NT dollars, according to UDN.
The latest central bank statistics show Taiwan’s total reserves are fifth in the world, after China, Japan, Switzerland and India.
Tsai Chiung-min (蔡炯民), head of the bank’s foreign exchange department, said there were two main causes for the July contraction. The first was the use of foreign exchange reserves to generate returns on investment and the second was fluctuations in the exchange rate of major currencies against the US dollar.
Tsai explained that the euro, Canadian dollar and Australian dollar have depreciated, while the Japanese yen and British pound have appreciated against the US dollar, which has remained largely stable until July, per UDN. Statistics show the market value of foreign holdings of Taiwanese stocks and bonds, and total bank deposits in New Taiwan dollars stood at NT $ 19.410 billion, a four-month low and a decline of 483.65 billion. NT dollars compared to June.
In addition, the ratio of foreign holdings of local currency holdings to foreign exchange reserves fell three percentage points to 129%, also a four-month low.
Taiwan’s Financial Supervisory Commission (FSC) on Thursday announced that foreign remittances totaled NT $ 97.56 billion for July, but FSC statistics were based on assets and did not include remittances. excess profits from foreign remittances. After Taiwan Semiconductor Manufacturing Corp. and MediaTek issued dividends in July, foreign holdings also paid dividends, the FSC said. Therefore, the Central Bank estimates that the net total of foreign remittances could reach 167.33 billion US dollars, per UDN.
Despite Taiwan’s decline in foreign exchange reserves in July, Taiwan still retained the fifth largest amount of reserves in the world along with other East Asian countries, China ($ 89.2 trillion) and Japan ( 35.85 trillion dollars) holding the first and second world reserves. , Central Bank data show.