The Central Bank announced yesterday that the balance of my country's foreign exchange reserves at the end of January was US$557.143 billion, a new high.

(AFP)

[Reporter Chen Meiying/Taipei Report] The Central Bank announced yesterday that the balance of my country's foreign exchange reserves at the end of January was 5571.

4.3 billion US dollars, continued to record highs, with a monthly increase of 22.

1.1 billion U.S. dollars, an increase for four consecutive months.

my country's foreign exchange reserve balance ranks fourth, second only to China, Japan, and Switzerland.

Cai Jiongmin, Director of the Central Bank's Foreign Exchange Bureau, pointed out that the continued increase in foreign exchange reserves in January, in addition to the investment income from foreign exchange reserves, mainly reflected the weakening of the US dollar, and the US dollar index fell by one percent in January.

38%. Non-U.S. currencies such as the euro and the Japanese yen all rose, and the conversion of foreign currency assets held by the central bank into U.S. dollars increased and contributed the most.

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In addition, according to the statistics of the central bank, foreign investors held domestic stocks and bonds in January based on the market price of the day. Together with their NT dollar deposit balance, they totaled US$551.7 billion, equivalent to 99% of foreign exchange reserves. an increase of sixteen percent.

Cai Jiongmin said that the net remittance of foreign capital in January was 73.

500 million U.S. dollars, after deducting part of the surplus remittances, foreign capital remittances amounted to about 6 billion U.S. dollars, almost all of which went into the stock market. Coupled with the increase in the value of Taiwan's stock market, the total value of foreign assets in Taiwan has skyrocketed.

After the Lunar New Year, the New Taiwan dollar has been soaring all the way, jumping from the three-digit prefix to the two-digit prefix, and the upward trend is the strongest among Asian currencies.

Cai Jiongmin analyzed that it should reflect the effect of the long holiday. During this period, the market expects the Federal Reserve (Fed) will not be as "hawkish" as before. With the end of interest rate hikes, the stock market rose and the US dollar weakened.

Cai Jiongmin said that there are still three major uncertainties in the stock and foreign exchange market. The first is the difference between the Fed’s monetary policy ideas and market perception; the second is that corporate profits are mixed, and even large companies continue to lay off employees; Whether it is as optimistic as the market expects remains to be seen.

He pointed out that last year, the Fed raised interest rates quickly and violently, which suppressed the performance of the overall financial market, and now it may be raised again to end this cycle of interest rate hikes. With the slowdown in interest rate hikes, even if the interest rate differential factor is still there, the dollar has weakened , the trend of the yen against the dollar is an obvious example.

Reflecting market expectations for cooling inflation, U.S. 10-year Treasury yields also recently fell back to three.

5%, funds re-embracing risk assets, pushing up international stock markets, Taiwan stocks are no exception.

Cai Jiongmin said that there are still three major uncertainties in the stock and foreign exchange market. The first is the difference between the Fed’s monetary policy ideas and market perception; the second is that corporate profits are mixed, and even large companies continue to lay off employees; Whether it is as optimistic as the market expects remains to be seen.

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