By Crystal Hsu / Staff reporter
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Taiwan’s foreign-exchange reserves fell for a second consecutive month last month as overseas investors repatriated stock gains and dividend income, boosting US dollar demand and prompting the central bank to step in to smooth currency-market volatility. The reserves fell by US$2.88 billion to US$594.27 billion from US$597.15 billion a month earlier, as foreign investors repatriated stock-market gains and dividends from Taiwan-listed companies, central bank Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) said yesterday. Against the backdrop, the New Taiwan dollar weakened 1.66 percent against the US dollar, even as most major currencies gained against the greenback. The US dollar index shed 1.26 percent during the month.
NT$1,000 and US$100 banknotes are displayed in an illustration photograph taken in Taipei on Jan. 22.
Foreign selling pressure in Taiwan’s equity market has subsided since the end of last month, with foreign investors turning net buyers yesterday, Tsai said. While some dividend payments remain in Taiwan for reinvestment, most funds have historically been transferred abroad, he said.
