The nation’s foreign exchange reserves rose to their second-highest level in history last month, increasing by US$3.3 billion to US$405.19 billion, the central bank said yesterday.
However, the US$405.19 billion figure was still US$1.37 billion lower than the record-high level of US$406.56 billion seen at the end of January.
“The main factor behind the increase came from the appreciation of the euro and other main currencies versus the US dollar,” Lin Sun-yuan (林孫源), director-general of the central bank’s department of foreign exchange, said at a media briefing.
The weak US dollar helped boost the conversion value of assets in other currencies, Lin said.
Returns from foreign exchange reserves management also helped raise foreign exchange reserves last month, Lin added.
The market value of securities investment and New Taiwan dollar deposits held by foreign portfolio investors at the end of last month totaled US$235.8 billion, the equivalent of 58 percent of foreign exchange reserves, the central bank said in its monthly report.
The figure represented an increase of US$12.4 billion from a month earlier, providing evidence of large inflows by foreign portfolio investors.
Taiwan remains the world’s fourth-largest holder of foreign exchange reserves, behind China, Japan and Russia.