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進入《TAIPEI TIMES》 Foreign exchange reserves hit record high in June
New Taiwan dollar and US dollar banknotes are pictured in Taipei on May 5. Photo: CNA
APPRECIATION:The central bank stepped in to stabilize the NT dollar after a surge in foreign institutional investment, triggered by optimism about tariffs and US Fed policy
/ Staff writer, with CNA
Taiwan’s foreign exchange reserves hit a record high at the end of last month, as the central bank intervened in the currency market to curb the New Taiwan dollar’s appreciation against the US dollar.
Foreign exchange reserves increased by US$5.48 billion from May, reaching an all-time high of US$598.43 billion, the central bank said on Friday.
While the central bank did not disclose the scale of its intervention, Department of Foreign Exchange Director-General Eugene Tsai （蔡炯民） said that the currency market remained relatively stable until the middle of last month. However, a shift occurred following the US Federal Reserve’s signal of a potential rate cut, which weakened the US dollar globally.
That and optimism surrounding US tariff negotiations led to a surge in foreign institutional investment in Taiwan’s market, increasing demand for the NT dollar and exacerbating upward pressure on its value, he said.
On Monday last week, the US dollar rebounded sharply in the final session, rising NT$0.722 （2.41 percent） to close at NT$29.902, the largest single-day gain in 24 years, which market participants attributed to central bank intervention aimed at stabilizing the local currency.
Despite that rebound, the US dollar declined 0.09 percent against the NT dollar last month and fell 10.97 percent in the second quarter, the sharpest quarterly decline in years.
Tsai said that while Taiwan operates under a floating exchange rate system, the central bank monitors market trends to ensure exchange rate stability within a “reasonable range.”
Authorities also closely monitor whether foreign investors promptly repatriate funds after selling Taiwan-based securities to prevent currency speculation, he added.
As of the end of last month, foreign investors held US$877.7 billion in Taiwan-listed stocks, bonds and NT dollar deposits, up from US$824.9 billion in May.
These holdings represented 147 percent of Taiwan’s total foreign exchange reserves, a rise from 139 percent the previous month, central bank data showed.
新聞來源：TAIPEI TIMES
