Taiwan's Forex Reserves Hit 8th Straight Monthly Record High of US$423.6B in July

Taiwan's foreign exchange reserves slightly increased US$207 million from a month earlier to hit the eighth consecutive monthly record high of US$423.661 billion in July, making Taiwan remain the world's fourth-largest forex reserves holder, according to Taiwan's central bank.

The central bank attributes the slight increase in forex reserves in the month to the depreciation of the euro, the Japanese yen and the British pound against the greenback, with devaluations of 1.87%, 1.44%, and 0.74%, respectively. As  a result, the central bank's holding of such foreign currencies dropped in book value based on the U.S. dollar, hence offsetting partially income from forex investments by the central bank.

In the same month Taiwan's stocks, bonds and NT dollar deposits held by foreigners totaled US$295.5 billion, down a monthly US$6.1 billion, yet still accounting for 70% of the total forex reserves. Some worry that Taiwan's forex reserves may plummet if foreigners transfer capital out of the island.

China experienced a quarterly rise of US$45.1 billion to US$3.9932 trillion in forex reserves at the end of June, remaining the world's largest forex reserves holder, with Japan following  at US$1.2839 trillion for minimal monthly increase of US$1 million. (JL)