Foreign reserves rise: central bank

By Amy Su  /  Staff reporter

Tue, Nov 06, 2012 - Page 14

The nation’s foreign exchange reserves rose to US$399.22 billion as of the end of last month, marking their highest level since August last year, on the back of returns from foreign exchange reserves management, the central bank said yesterday.

The jump represented an increase of US$1.26 billion from US$397.95 billion in foreign exchange reserves at the end of September, and was also the third consecutive monthly rise, the bank said in its monthly report.

“The main factor behind the increase was investment returns,” said Lin Sun-yuan (林孫源), director-general of the bank’s department of foreign exchange.

In addition, net inflows from foreign portfolio investors totaled US$790 million last month, helping maintain the level of foreign exchange reserves, Lin added.

Foreign exchange reserves form a significant part of the nation’s safety net against global financial crises and market volatility since the nation is not a member of either the IMF or the World Bank and cannot rely on these organizations or their member countries for financial aid.

With the latest data, Taiwan safeguarded its position of holding the world’s fourth-largest foreign exchange reserves, behind China, Japan and Russia.

So far this year, the country’s foreign exchange reserves have increased by US$13.67 billion from the end of December last year.

China’s foreign exchange reserves expanded to US$3.285 trillion at the end of September, while Japan and Russia’s foreign exchange reserves stood at US$1.198 trillion and US$463 billion during the same period respectively, according to the statistics provided by the central bank.