TAIPEI (Taiwan News) — Taiwan’s foreign exchange reserves reported an increase for October,
TAIPEI (Taiwan News) — Taiwan’s foreign exchange reserves reported an increase for October, ending four consecutive months of declines.
Reserves reached US$542.79 billion (NT$17.4 trillion) for the previous month, the Central Bank said Friday (Nov. 4).
The increase of US$1.68 billion compared to the end of September, the fourth month of reported declines, might be a consequence of more stable foreign exchange markets in October, the Liberty Times reported. The September figure amounted to the lowest level in 18 months and the sharpest drop in 12 years.
Central Bank officials also mentioned the positive performance of stock markets in the United States and Taiwan during October as positive contributing factors. At some points, the bank intervened by either selling or buying currency when the need for U.S. dollars increased or diminished, but the two movements canceled each other out, the report said.
Securities and savings deposits held by foreign portfolio managers fell to US$411.8 billion, or 76% of foreign exchange reserves, a decline of 5% from September. The shrinking value of stocks on Taiwan’s stock exchange and the slight fall in the exchange rate of the New Taiwan dollar were seen as factors in the decline, according to the Central Bank.
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