Taiwan’s foreign exchange reserves break record

台灣外匯存底創歷史新高

TAIPEI (Taiwan News) — Taiwan’s foreign exchange reserves rose to an all-time high of NT$18.35 trillion (US$602.94 billion) in September, the Central Bank said Tuesday.

The bank said reserves increased by NT$167.72 billion from August, driven by gains on overseas investments, exchange rate movements, and limited market intervention to smooth currency fluctuations, per CNA. Taiwan now ranks fourth worldwide in reserves.

Central Bank Department of Foreign Exchange Director-general Tsai Chiung-min (蔡烱民) said expectations of US rate cuts spurred global fund inflows and a surge in tech stocks, pushing the Taiwan dollar higher. The bank stepped in on certain days when volatility intensified, he added.

At the end of September, foreign investors held local stocks and bonds valued at NT$31.65 trillion, including Taiwan dollar deposits — about 172% of the nation’s reserves — both record highs.

Speculation has emerged that Taiwan’s ample reserves could become leverage in Taiwan–US negotiations after South Korea reached a currency deal with Washington. Tsai dismissed the talk, saying the Central Bank is not involved in the bilateral working group and the two matters are unrelated.

He noted that Taiwan’s financial conditions differ from South Korea’s. Taiwan’s current account surplus exceeds NT$3.04 trillion and roughly NT$3 trillion in overseas assets, funds that continue to support investment and corporate liquidity, he said.

Tsai added the Central Bank has received no directive to deploy its reserves for investment or engage with the US Department of Commerce. He said the bank maintains communication with the US Treasury and that any foreign exchange operations are transparent.