Fri, Apr 06, 2012 - Page 12 News List

Forex reserves fall by US$555 million

By Kevin Chen  /  Staff reporter

The nation’s foreign exchange reserves dropped by US$555 million last month from February, bringing total reserves to US$393.87 billion, the central bank said in a statement yesterday.

Taiwan remained the world’s fourth-largest holder of foreign exchange reserves, behind China, Japan and Russia, the bank’s data showed.

The central bank attributed the fall last month to the depreciation of the euro and other major currencies against the US dollar.

According to the bank’s latest tallies, foreign exchange reserves denominated in those currencies were worth less in terms of the base currency, the greenback, as the value of the euro dropped by 0.8 percent and that of the yen declined by 2.04 percent, while sterling rose 0.59 percent against the US dollar.

“The resulting decrease in foreign exchange reserves [because of those currencies’ depreciation] was greater than returns from the bank’s management of its reserves,” the bank said in the statement.

Meanwhile, the market value of securities investments and New Taiwan dollar-denominated deposits held by foreign portfolio investors at the end of last month reached US$219.6 billion, equivalent to 56 percent of the foreign exchange reserves and little changed from the US$221.7 billion reported at the end of February, the bank’s data showed.

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