The nation’s financial accounts showed a net outflow for the 18th consecutive quarter, the longest period of outflow in the nation’s history, as local investors raised holdings in overseas assets to take advantage of the economic recovery in the US, the central bank said yesterday.
However, a strong surplus in the current account more than muted the outflows, allowing the overall balance of payments to record a surplus of US$1.82 billion in the fourth quarter last year, the bank added.
The balance of payments, which includes the current, financial and capital accounts, summarizes the net amount of money paid or received by the nation.
Based on the bank’s latest report, the US$1.82 billion surplus in the balance of payments last quarter was lower than the US$4.18 billion recorded in the third quarter last year and the US$2.68 billion posted in the fourth quarter of 2013.
The higher net outflow on the financial account — which totaled US$18.4 billion from October to December last year, the highest quarterly level in history — was the major factor behind the lower surplus in balance of payments.
Residents’ overseas portfolio investments saw net outflow of US$15.89 billion last quarter, mainly attributable to greater investment in foreign securities by local insurance companies, the report said.
However, non-residents’ portfolio investments recorded a net inflow of US$1.74 billion, mostly due to their increasing foreign investments in the Taiwanese stock markets, the report said.
The central bank’s Economic Research Department Deputy Director Lin Shu-hua (林淑華) said the trend of net outflows indicated a balancing out, as the nation’s current account continued to post a surplus last quarter.
“Some other major global markets, such as South Korea, Singapore and Japan, saw similar moves,” Lin told a media briefing.
The current account saw a surplus of US$19.18 billion in the fourth quarter last year, also hitting a record-high quarterly level, with a growth in exports of local electronic products, the bank said.
For the whole of last year, the overall balance of payments saw a surplus of US$65.34 billion, with net outflow of financial account standing at US$53.05 billion, both record-high levels, the report said.
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