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進入《TAIPEI TIMES》 Interest income drives up forex reserves
Euro, Hong Kong dollar, US dollar, Japanese yen, British pound and Chinese 100 yuan banknotes are seen in this picture illustration from Jan. 21, 2016. Photo: REUTERS
By Crystal Hsu / Staff reporter
Taiwan’s foreign exchange reserves last month gained US$1.13 billion from the previous month to US$577.98 billion, backed by higher interest income, which offset capital outflows, the central bank said yesterday.
November is the high season for the central bank to collect interest income on its bond holdings, Department of Foreign Exchange Deputy Director-General Ho Lan-chih （賀蘭芝） told a media briefing in Taipei.
“The currency market is quite stable and the central bank rarely stepped in to maintain market order and stability,” Ho said.
However, foreign portfolio managers trimmed their positions in local equities and bonds amid anxiety over US president-elect Donald Trump’s tariff threat, which could weigh on Taiwan’s electronics exports, she said.
The global capital movements also had to do with Trump’s pledge to “make America great again” through tax cuts and protectionist trade measures, which lent support to the US dollar against almost all other major currencies, Ho said.
Last month, the euro fell 2.27 percent, the British pound declined 2.28 percent, the Chinese yuan shrank 1.37 percent and the New Taiwan dollar depreciated 1.51 percent against the US dollar, she said, adding that the yen managed to buck the trend with a 2.14 percent increase.
Financial markets are now looking at a potential interest rate cut by the US Federal Reserve later this month after the latest data showed the US economy was relatively resilient, but appeared to be wanting in strength, Ho said.
The US dollar index, which measures the greenback against a basket of major currencies, picked up 1.69 percent last month, Ho said.
The movement of the greenback would continue to dominate the NT dollar’s direction even though the brief martial law declaration in South Korea helped boost the local currency this week, she said.
Taiwan last month replaced India as the world’s fourth-largest holder of foreign exchange reserves after China, Japan and Switzerland, central bank data showed.
新聞來源：TAIPEI TIMES
