Taipei, June 5 (CNA) Taiwan’s overseas trade reserves rose for the second consecutive month in Could as a result of appreciation of world currencies in opposition to the U.S. greenback and better returns on the financial institution’s portfolio, in keeping with the nation’s central financial institution.
Taiwan had foreign exchange reserves of US$542.98 on the finish of Could, up US$1.87 billion from a month earlier and the second highest in historical past after the US$543.33 billion in reserves recorded on the finish of February, central financial institution knowledge confirmed.
Tsai Chiung-min (蔡炯民), head of the financial institution’s International Change Division, mentioned the U.S. greenback index, which tracks the dollar’s worth in opposition to the currencies of america’ six main buying and selling associate, fell 1.59 % in Could.
That mirrored weak point within the U.S. greenback, rising foreign exchange reserves in Could in U.S. greenback phrases due to rises within the worth of different currencies within the portfolio.
In Could, the euro rose 1.72 % in opposition to the U.S. greenback, the Chinese language yuan gained 1.74 %, the British pound rose 2.82 % and the South Korean received appreciated 0.13 %, Tsai mentioned.
The Taiwan greenback additionally benefited from the dollar’s weak point, gaining 1.06 % in opposition to the U.S. greenback in Could, Tsai mentioned.
Nevertheless, the Japanese yen bucked the upturn, falling 0.25 % in opposition to the U.S. greenback in Could, in keeping with the central financial institution.
In line with the central financial institution, Taiwan had the fifth highest foreign exchange reserves on this planet in Could, behind China’s US$3.198 trillion (April), Japan’s US$1.295 trillion (April), Switzerland’s US$1.004 trillion (April), and India’s US$548.5 billion (Could).
Tsai mentioned flows of funds out and in of Taiwan in Could remained secure, with some overseas buyers persevering with to maneuver funds into Taiwan and home life insurance coverage firms parking their cash in overseas securities.
In line with the Monetary Supervisory Fee (FSC), the highest monetary regulator in Taiwan, overseas institutional buyers had a web influx of US$3.247 billion in Could, regardless of an escalation in domestically transmitted COVID-19 instances.
The COVID-19 outbreak contributed to a fall within the Taiex, the benchmark weighted index on the Taiwan Inventory Change, of 498.23 factors or 2.84 % in Could.
FSC knowledge confirmed that the mixture web overseas fund influx hit a brand new excessive of US$221.38 billion on the finish of Could, a quantity that has been on the rise since Taiwan lifted a ban on overseas institutional investments within the native inventory market on the finish of 1990.
In the meantime, the worth of overseas investor holdings in Taiwan shares, bonds and Taiwan dollar-denominated deposits as of the tip of Could was US$715.40 billion, down from US$727.2 billion on the finish of April as a result of market’s latest losses brought on by the COVID-19 scare.
These holdings represented 132 % of Taiwan’s whole overseas trade reserves as of the tip of Could, down from 134 % on the finish of the earlier month, the central financial institution’s knowledge confirmed.
The central financial institution mentioned it’ll proceed to make sure ample foreign exchange reserves to take care of secure monetary markets at residence and defend in opposition to the potential for overseas institutional buyers all of a sudden shifting their funds in a foreign country.