Taiwan's Forex Reserves Soar by $7.6B in August

Taiwan's Central Bank reported that foreign exchange reserves surged by $7.633 billion in August, reaching $601.904 billion at the end of the month. This marked a significant rebound from two consecutive months of decline and reclaimed the $600 billion threshold for the largest monthly gain since May last year.

The central bank attributed the increase to three main factors: investment income from reserve assets, a weaker US dollar that lifted non-dollar currencies, and the central bank's own currency-buying operations in the market. According to Tsai Chiung-min, director-general of the Foreign Exchange Department, the central bank's market intervention was the most significant factor.

The Taiwan dollar appreciated 2.15% in August, while foreign investors posted a net inflow of $1.2 billion. Foreign holdings of Taiwanese stocks, bonds, and Taiwan-dollar deposits totaled $1.861 trillion, equivalent to 309% of foreign exchange reserves.