
Taipei, July 5 (CNA) Taiwan's foreign exchange reserves surged to a record high at the end of June, as the central bank intervened in the currency market to limit the Taiwan dollar's appreciation against the U.S. dollar.
According to data from Central Bank of the Republic of China (Taiwan), forex reserves rose by US$5.48 billion from May, reaching US$598.43 billion at the end of June -- the highest level ever recorded.
While the central bank did not disclose the exact scale of its intervention, Tsai Chiung-min (蔡炯民), head of the Foreign Exchange Department, said the local forex market was relatively stable until mid-June. However, a shift occurred after the U.S. Federal Reserve signaled a possible rate cut, weakening the U.S. dollar globally.
This, coupled with optimism over U.S. tariff negotiations, prompted foreign institutional investors to inject funds into Taiwan's market, increasing demand for the Taiwan dollar and intensifying appreciation pressure.
On June 30, the U.S. dollar rebounded late in the session, jumping NT$0.722 (2.41 percent) to close at NT$29.902 -- the largest single-day gain in 24 years. Market participants attributed the surge to central bank buying, aimed at stabilizing the currency.
Despite this bounce, the U.S. dollar fell 0.09 percent against the Taiwan dollar in June, and dropped 10.97 percent in the second quarter - the sharpest quarterly decline in years.
Tsai emphasized that Taiwan follows a floating exchange rate system, but the central bank actively monitors market movements to ensure exchange rate stability within a "reasonable range." He added that authorities also closely monitor whether foreign investors repatriate funds promptly after selling Taiwan-based securities, in an effort to curb currency speculation.
As of the end of June, foreign investors held US$877.7 billion in Taiwan-listed stocks, bonds and Taiwan dollar deposits -- up from US$824.9 billion in May. These holdings equaled 147 percent of Taiwan's total forex reserves, up from 139 percent in March.
The central bank reiterated its commitment to maintaining sufficient foreign reserves to safeguard Taiwan's financial stability and cushion against sudden capital outflows.
- Sports
Fubon Guardians vow to improve stadium oversight following fan incident
07/13/2025 07:03 PM - Society
Railways urge passengers to keep power banks on their person
07/13/2025 06:33 PM - Business
Taiwan firms advised to ignore 30% tariff on Mexico until it is final
07/13/2025 06:24 PM - Culture
OG boy group F4 reunite on stage during Mayday concert at Taipei Arena
07/13/2025 05:43 PM - Politics
Indigenous land-based version of Sky Sword II makes Han Kuang debut
07/13/2025 04:27 PM