NCD auction rate falls for fourth month

By Amy Su  /  Staff reporter

Sat, Jul 06, 2013 - Page 13

The central bank yesterday auctioned NT$100 billion (US$3.31 billion) in 364-day negotiable certificates of deposit (NCDs) at an average interest rate of 0.632 percent, marking the lowest level since September 2010, as the market remained awash in liquidity.

The average interest rate slid for a fourth month in a row and compares with 0.635 percent last month. The auction attracted bids for 2.85 times the amount on offer, lower than the 3.02 times recorded last month, bank data showed.

The central bank also reported that the nation’s foreign exchange reserves totaled US$406.61 billion as of the end of last month, down US$10 million from the record-high level recorded a month earlier.

The net outflow of foreign capital offset returns from the management of reserve assets, further dragging down foreign exchange reserves last month, the bank said in its monthly report.

The net outflow of foreign portfolio investors totaled US$2.96 billion last month, the bank said, citing data from the Financial Supervisory Commission.

The market value of securities investment and New Taiwan dollar deposits held by foreign portfolio investors at the end of last month reached US$228.5 billion, equivalent to 56 percent of foreign exchange reserves, the report said.

Taiwan remains the world’s fourth-largest holder of foreign exchange reserves, behind China, Japan and Russia.