Sat, Dec 07, 2013 - Page 13 News List

Foreign exchange reserves fall after months of gains

GOING DOWN:Last month’s decrease was due to a depreciation of the euro and other reserve currencies against the US dollar, the central bank said

By Amy Su  /  Staff reporter, with CNA

The nation’s foreign exchange reserves declined last month from October, ending four consecutive months of increases, the central bank said yesterday.

Foreign exchange reserves totaled US$415.6 billion at the end of last month, a decrease of US$42 million from a month earlier, which the central bank said was because the returns from the management of reserve assets were offset by the depreciation of the euro and other reserve currencies against the US dollar.

The bank’s data showed the market value of securities investment and New Taiwan dollar deposits held by foreign portfolio investors reached US$247.5 billion at the end of last month, which was equivalent to 60 percent of Taiwan’s foreign exchange reserves.

Separately, the bank said that the yield of the auction of 364-day negotiable certificates of deposit (NCDs) yesterday hit a more-than-three-year low on ample liquidity in the local market.

The interest rate at the auction of NT$100 billion (US$3.38 billion) of 364-day NCDs fell to 0.564 percent, the lowest rate since the central bank resumed sales of the 364-day market instrument in April 2010.

Dealers said that NCD rates are continuing to post new lows as the US and eurozone maintain low interest rates and accommodative monetary policies.

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