Tue, Dec 06, 2011 - Page 12 News List

Foreign exchange reserves fall US$5bn

By Amy Su  /  Staff Reporter

The nation’s foreign exchange reserves totaled US$387.97 billion last month, down US$5.36 billion from a month earlier and the lowest since January, the central bank said yesterday.

“The main factor leading to the drop in foreign exchange reserves last month was the net outflow of foreign capital that created demand for foreign exchange,” the bank’s Department of Foreign Exchange director-general Lin Sun-yuan (林孫源) told a press briefing.

Net outflow of foreign capital totaled US$1.94 billion last month, Lin said, citing data from the Financial Supervisory Commission.

As a result, the market value of securities and deposits held by foreign investors at the end of last month reached US$180.8 billion, equivalent to 47 percent of the nation’s foreign exchange reserves, the lowest level this year, the bank’s data showed.

Moreover, with the euro and other major currencies depreciating in value against the greenback last month, foreign exchange reserves denominated in those currencies were worth less in terms of the base currency — the US dollar — Lin added.

The data showed Taiwan continues to have with the world’s fourth-largest foreign exchange reserves, behind China, Japan and Russia.

China’s foreign exchange reserves grew to US$3.202 trillion at the end of September, while Japan’s stood at US$1.129 trillion in October and Russia’s at US$464 billion.

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