Sat, Aug 06, 2011 - Page 12 News List

Foreign exchange reserves hit new high

By Kevin Chen  /  Staff Reporter

The nation added US$440 million to its foreign exchange reserves last month, bringing total reserves to a record US$400.77 billion, the central bank said in a statement yesterday.

The slight increase in the foreign exchange reserves last month maintained Taiwan’s position as the world’s fourth-largest holder of foreign exchange reserves, behind China, Japan and Russia, the bank’s data showed.

China had about US$3.2 trillion in reserves as of the end of June, followed by Japan with US$1.15 trillion last month and Russia with US$471.9 billion as of July 1.

“The level of foreign exchange reserves showed a moderate increase in July because returns from the management of reserve assets were partly offset by the depreciation of the euro against the US dollar,” the bank said in a statement.

The market value of securities investments and deposits held by overseas investors, equivalent to 60 percent of overall reserves, reached US$238.6 billion last month, down from US$246.4 billion the previous month, the bank said.

Taiwan relies on sizable foreign exchange reserves to protect the value of its own currency and to serve as a safety net in case of a financial crisis or market volatility, since it is not a member of either the IMF or the World Bank and it cannot rely on these organizations or their member countries for financial aid.

This story has been viewed 3663 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top