Taiwan’s foreign exchange reserves reach record level in 2019

Central Bank intervened in market four times since May: reports

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Taiwan's Central Bank (on the left). 

Taiwan's Central Bank (on the left).  (CNA photo)

TAIPEI (Taiwan News) — Taiwan’s foreign exchange reserves reached a total of US$478.12 billion last month, the seventh consecutive monthly record, according to data from the Central Bank.

The new figure was more than US$4 billion higher than the previous record high in November, the bank announced Monday (Jan. 6).

As reasons for the record performance, officials named the rise of the euro against the U.S. dollar, income from investments in foreign currency, and the Central Bank’s own involvement in the market, according to a report by the Liberty Times.

The newspaper noted that it was the fourth time since last May that the bank acknowledged it had involved itself in the foreign currency market.

While exchange rates have to be set by market forces, if there are seasonal elements at play or if there is unreasonable interference in currency markets, the Central Bank said it would intervene to maintain order, adding that it did not have a set target for the value of the New Taiwan dollar, the report said.

For the whole of 2019, Taiwan’s foreign reserves increased by US$16.34 billion, leading observers to speculate whether the island could overtake Saudi Arabia to rank No.4 on the global list of foreign exchange reserve holders, UDN reported.