Taiwan’s central bank announced today (4th) that my country’s foreign exchange reserves at the end of February stood at US$549.994 billion, an increase of US$1.12 billion from the end of last month and a new monthly high. Cai Jiongmin, director of the Central Bank’s foreign exchange bureau, pointed out that the surplus of foreign capital remitted in February was about US$2.78 billion. The net remittance of foreign capital was US$1.903 billion. However, the foreign exchange market in Taipei was balanced and there was no disorder.
Cai Jiongmin explained that foreign capital inflows in February amounted to about US$877 million. However, after deducting the surplus of US$2.78 billion in foreign remittances, the net remittance of foreign capital was US$1.903 billion.
As of the end of February, foreign holdings of domestic stocks and bonds were calculated based on the market price of the day, together with their NTD deposit balances, which amounted to US$710.3 billion, a monthly decrease of US$25.4 billion, or about 129% of foreign exchange deposits, down 5 percentage points from the previous month. This mainly reflects changes in stock market value and foreign shareholdings.
Cai Jiongmin further pointed out that the remittance of foreign capital since the beginning of this year is mainly due to the correction of the global stock market, resulting in the diversion of international funds, not just the war between Russia and Ukraine.
The factors of changes in foreign exchange reserves in February reflect the income from investment and utilization of foreign exchange reserves and changes in the exchange rate of major currencies against the US dollar. According to the Central Bank’s statistics, the US dollar index depreciated by 0.25% in February, while the euro appreciated by 0.56%, the pound by 0.16%, and the Australian dollar by 2.07%. The RMB appreciated by 0.73%, the Japanese Yen by 0.1% and the Xingyuan by 0.07%.
Regarding the recent depreciation of the New Taiwan dollar, which has depreciated by more than 1% since February, Cai Jiongmin emphasized that compared with other non-US currencies, the New Taiwan dollar is still relatively stable. On the trading day, the performance of the Taipei foreign exchange market was relatively stable. The market supply and demand did not change significantly, and there was no disorder. If there were large fluctuations, the central bank would also make small adjustments.
Looking at the foreign exchange reserves of various countries, China’s latest statistics by the end of January reached 3.2216 trillion US dollars, Japan’s 1.2599 trillion US dollars, Switzerland 1.0174 trillion US dollars, Russia’s 468.6 billion US dollars, Singapore’s 408.4 billion US dollars, and Hong Kong’s 475.2 billion US dollars.
While India’s foreign exchange reserves as of February 18 were US$567.1 billion, South Korea’s foreign exchange reserves reached US$437 billion at the end of February.