Forex reserves rise for fourth straight month: central bank

By Amy Su  /  Staff reporter

Thu, Dec 06, 2012 - Page 13

The nation’s foreign-exchange reserves rose for the fourth straight month to a high of US$400.96 billion as of the end of last month, on the back of continuous net inflow by foreign investors, the central bank said yesterday.

That represented an increase of US$1.74 billion from US$399.22 billion at the end of October, and helped the nation maintain its position of holding the world’s fourth-largest foreign-exchange reserves — behind China, Japan and Russia, the bank said.

“The main factor driving the increase was the appreciation of the euro and other major currencies against the US dollar,” Lin Sun-yuan (林孫源), director-general of the bank’s department of foreign exchange, told a media briefing.

Investment gains also boosted the reserves, Lin said.

The increase in the foreign-exchange reserves reflected a continuous net inflow of foreign capital over the past few months.

The market value of securities investment and New Taiwan dollar deposits held by foreign portfolio investors at the end of last month reached US$218.7 billion, equivalent to 55 percent of the foreign-exchange reserves, the bank’s data showed.

Net inflows from foreign investors totaled US$1.26 billion last month, marking the fourth straight month of net inflows, according to data released by the Financial Supervisory Commission (FSC) on Tuesday.

Prior to those four months of net inflows — which totaled US$4.3 billion — foreign investors posted a net outflow of US$6.72 billion from April to July, data showed.

Lin said most of the foreign capital has been invested in Taiwanese equities.

In the first 11 months of the year, foreign investors bought a net NT$94.69 billion (US$3.25 billion) in the main bourse, and a net NT$1.25 billion in the over-the-counter market, the commission’s data showed.