Central Bank of the Republic of China (Taiwan) (CBC) Governor Yang Chin-long put foreign institutional investors’ overseas transfers at about $10 billion since Nov. 1 as Taiwan’s currency weakened, CNA and United Daily News reported.
The estimate covered transfers through Nov. 10, when Yang spoke to lawmakers, according to the two outlets. He described the movement of profits and dividend income to other markets as routine.
The CBC’s exchange-rate data put the U.S. dollar at NT$32.882 per US$1 on Nov. 9, compared with NT$32.768 on Nov. 6. More Taiwan dollars were therefore needed to buy $1. The bank also reported that foreign-exchange reserves stood at $596.44 billion at the end of October, down $4.31 billion from the end of September. It cited intervention to smooth capital flows, investment returns and exchange-rate movements as factors in the change.
Taiwanese shares rose over the same period. The Taiex gained 1,960.06 points on Nov. 9 and 1,050.22 points on Nov. 10, closing the second session at 42,711.92, Taiwan Stock Exchange (TWSE) data show. Yet the TWSE recorded net share sales of NT$90.06 billion and NT$34.12 billion on those respective days by foreign investors, including Mainland Area investors but excluding foreign dealers. Share transactions do not establish how much money investors sent abroad.
Taiwan’s Ministry of Finance (MOF) authorized the National Financial Stabilization Fund’s executive secretary on Nov. 6 to use the fund for market support if needed after a sharp decline in shares. Its announcement gave no figure for actual fund use.
The latest currency move follows earlier foreign outflows and Taiwan-dollar weakness covered by EconoTimes in October. The CBC’s next foreign-exchange reserve release is scheduled for Dec. 4.
