Taiwan’s foreign exchange (forex) reserves as of the end of August had hit a new high, largely on increased returns from the central bank’s fund management, according to a press release issued by the bank Wednesday.
The central bank said that at the end of August, Taiwan had total forex reserves of US$459.88 billion, an increase of US$1.38 billion from a month earlier.
Lin Tsu-shun (林祖舜), deputy head of the central bank’s foreign exchange department, said that at the end of August, the U.S. Dollar Index reached 95.14, which was a rise of 0.62 percent from the end of the previous month.
In August, the Taiwan dollar fell 0.38 percent against the U.S. dollar, while the Chinese yuan, Singapore dollar, the euro and the British pound also fell by 0.2, 0.45, 0.28 and 0.91 percent, respectively, Lin said, adding however that the Japanese yen climbed 0.54 percent.
Taiwan’s forex reserves includes the euro, yen and yuan, but is largely dominated by the U.S. dollar, Lin noted.
Although a number of currencies have depreciated and their amounts reduced after being converted into U.S. dollars, the overall forex reserves have shown a net increase due to the increase in foreign exchange deposits, Lin explained.
Meanwhile, holdings of Taiwanese stocks, bonds and Taiwan dollar-denominated deposits by foreign investors stood at US$396.0 billion at the end of August, representing around 86 percent of the forex reserves, the central bank said.