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Taiwan's Forex Reserves Rebound Above $600 Billion, Marking Largest Monthly Gain in 16 Months
cnyes · 2026-09-04
Taiwan's central bank reported that forex reserves rose by $7.63 billion in August to $601.9 billion, ending a two-month decline.
What Happened
Forex Reserve Growth: Taiwan's central bank announced that foreign exchange reserves reached $601.9 billion at the end of August, marking a monthly increase of $7.63 billion. This growth represents the largest monthly gain since May of last year, successfully reversing a two-month downward trend.
Drivers of Increase: According to the central bank, the rise was primarily driven by investment returns and fluctuations in major currency exchange rates against the US dollar. Additionally, the bank's active intervention to maintain market order played a significant role in the overall increase.
Currency and Capital Flows: Most non-US currencies appreciated in August, with the New Taiwan Dollar showing notable strength by gaining 2.51%. Despite some capital outflows following dividend payments, foreign investors remained net buyers, with their total holdings in local stocks, bonds, and deposits accounting for 309% of the total reserves.
Global Context: Comparing Taiwan's position to other major economies, China continues to hold the largest reserves at over $3.4 trillion, followed by Japan and Switzerland. Taiwan's current reserve levels reflect a stable financial position amid ongoing global market volatility.