The central bank announced today (5th) that my foreign exchange reserves in September reached US$541.107 billion, a decrease of US$4.375 billion from August, and the reduction was the highest in the past 12 years. The depreciation of the US dollar exchange rate, the central bank’s entry to adjust the foreign exchange market order, and the investment income of foreign exchange reserves.
Cai Jiongmin, director of the foreign exchange bureau of the central bank, explained that the biggest factor affecting foreign exchange reserves in September was the exchange rate.US dollar indexrose 3.14%, as forAUDdepreciated by 5.74%,GBPdepreciated by 5.1%,New Taiwan Dollardepreciated by 4.46%,JPYThe depreciation of 4.24%, under the depreciation of major currencies other than the US dollar, led to a larger decrease in the amount of foreign exchange reserves.
Cai Jiongmin also said that the market fluctuated greatly in September, so the central bank adjusted the foreign exchange market more. The foreign exchange reserves in September decreased by 4.375 billion US dollars compared with the previous month, and the amount of reduction reached a new high since November 2010. In fact, the central bank’s foreign exchange deposits in March last year Reserves have also decreased by regarding $4.28 billion, and foreign exchange reserves also decreased by $3.7 billion in April this year.
SeptemberNew Taiwan DollarSignificant devaluation, media attention, whether the central bankNew Taiwan DollarStill have a defensive bottom line?Cai Jiongmin said that the central bank has no price threshold, and the principle of adjusting the exchange rate is to look at the long-term relative trend, but the recent strong rise in the dollar has led towonandJPYUnder this trend, the central bank cannot let theNew Taiwan DollarToo contrarian.
Cai Jiongmin said that when the supply and demand in the foreign exchange market is out of balance, the central bank will adjust and continue to communicate with manufacturers.
