Taiwan Forex Reserves Fall for Second Month Amid Dividend Repatriation
Taiwan's foreign-exchange reserves fell for the second consecutive month in August as overseas investors repatriated stock gains and dividend income, driving up demand for US dollars. The central bank intervened to stabilize the currency market.
The reserves decreased by $2.88 billion to $594.27 billion from July's $597.15 billion, according to Department of Foreign Exchange Director-General Eugene Tsai. This decline was largely due to foreign investors repatriating their earnings from Taiwan-listed companies.
Tsai noted that most dividend payments are historically transferred abroad, but acknowledged that this can create temporary pressure on the local currency. He cited examples in July 2024 and the first quarter of last year, where the NT dollar weakened amid dividend remittances before rebounding as funds returned to the market.