Taiwan's forex reserves back above US$600 billion after central bank intervention
Taiwan's currency stockpile grew again in August, a sign the central bank is actively fighting a rising Taiwan dollar to protect exporters.
- Reserves climbed back over $600 billion, ending a two-month slide.
- The central bank bought US dollars and sold Taiwan dollars to stop the greenback from falling too fast.
- Foreign investors poured money back into Taiwan stocks in August, hunting bargains after July's selloff, which pushed the local currency up.
- July's drop came from foreign funds pulling out cash after collecting big dividend payouts.
- Foreign holdings of Taiwanese stocks, bonds and deposits now equal roughly three times the country's total reserves.
Outlook: The central bank plans to keep reserves high as a buffer, so expect more intervention if foreign money keeps flooding in or suddenly rushes out.