The central bank announced on the 5th that my country’s foreign exchange deposits at the end of April were US$561.116 billion, a record high for six consecutive months, an increase of US$837 million from the end of March. Cai Jiongmin, director of the Central Bank’s Foreign Exchange Bureau, said that the increase in foreign exchange reserves in April was mainly due to the income from investment and use of foreign exchange reserves and the impact of changes in the exchange rates of major currencies against the US dollar. China’s foreign exchange reserves continued to rank fourth in the world.
Cai Jiongmin pointed out that the international dollar index fell by 0.83% in April, the euro appreciated by 1.02%, the British pound appreciated by 0.78%, and the rest generally depreciated. Depreciation of 0.55%, the currencies of various countries are mixed, so the main impact is the income from investment applications.
Observing the trend of foreign capital, Cai Jiongmin pointed out that according to the statistics of the Financial Supervisory Commission, foreign capital remitted US$462 million in April, but TSMC paid dividends in that month, and the surplus of about US$2 billion was remitted out. If the principal is added to the surplus, foreign capital remitted out in April About $2 billion to $3 billion. He also mentioned that the foreign exchange market was generally stable in April, so the central bank did not need to enter the market to adjust.
In addition, foreign investors held domestic stocks and bonds at the end of April. Calculated based on the market price of the day, together with their NT dollar deposit balance, they totaled US$538.9 billion, equivalent to 96% of foreign exchange reserves, a decrease of US$26.7 billion from the previous month, a month-on-month decrease of 5 percentage points. Cai Jiongmin explained that this part mainly reflects the decline in the market value of the stock market, because foreign capital sold more than 69 billion yuan in April, which is more than 2 billion US dollars.
According to the Central Bank’s announcement, Taiwan’s foreign exchange reserve balance still ranks fourth among major countries, followed by the mainland’s US$3,183.9 billion as of the end of March, followed by Japan’s US$1,128.7 billion by the end of March, and Switzerland’s US$813.9 billion by the end of March Ranked third, India ranked fifth with US$514.5 billion as of April 21, others including Saudi Arabia and Hong Kong with US$413.3 billion at the end of March, and South Korea with US$402.2 billion at the end of April.
Looking forward to May, Cai Jiongmin believes that since May, the foreign exchange market has been very stable, the market supply and demand have been balanced, and the stock market has also seen little change. Last year, the main impact on the market was the monetary policies and inflation of various countries, but this year, changes in the economy and corporate profits are the main factors. The main factors affecting the market.
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