Taiwanese Stocks Soar, Central Bank Intervenes in Foreign Exchange Market, April Foreign Exchange Reserves Return to Over US$600 Billion
Taiwan's central bank announced that its foreign exchange reserves reached US$602.488 billion at the end of April, an increase of US$5.602 billion from the previous month, once again surpassing the US$600 billion mark. This was attributed to booming Taiwanese stocks attracting foreign capital inflows and the central bank's intervention to balance the foreign exchange market.
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- 📰 Published: May 6, 2026 at 19:13
- 🔍 Collected: May 6, 2026 at 19:31 (18 min after Published)
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Central News Agency
(Central News Agency reporter Pan Tzu-yu, Taipei, 6th) The Central Bank today announced that its foreign exchange reserves amounted to US$602.488 billion at the end of April, an increase of US$5.602 billion from the previous month, once again exceeding the US$600 billion threshold. Tsai Chiong-min, Director-General of the Central Bank's Foreign Exchange Department, stated that the continued rise in Taiwanese stocks in April attracted foreign capital inflows, which at one point led to an imbalance in supply and demand in the New Taiwan Dollar foreign exchange market. The central bank's intervention by buying foreign currency was one of the factors boosting foreign exchange reserves.
Tsai Chiong-min explained three major factors that boosted foreign exchange reserves: first, investment gains were realized; second, the US dollar index weakened in April, leading to the appreciation of most currencies, which increased their value when converted to US dollars; third, foreign investors aggressively bought Taiwanese stocks, at one point exceeding NT$100 billion in a single day, causing a massive inflow that created an imbalance in supply and demand in the foreign exchange market, prompting the central bank to buy foreign currency for adjustment.
Reviewing the performance of stocks and foreign exchange in April, Taiwanese stocks surged by 7203.64 points in a single month, setting a record for the strongest monthly close. The strong momentum of Taiwanese stocks attracted hot money inflows, and the New Taiwan Dollar exchange rate simultaneously strengthened, appreciating by 0.332 NTD or 1.05% for the month, turning positive on a monthly basis.
As the market value of Taiwanese stocks held by foreign investors climbed, central bank statistics show that as of the end of April 2026, the market value of domestic stocks and bonds held by foreign investors, calculated at current market prices, together with their New Taiwan Dollar deposit balances, totaled US$1,614.9 billion, equivalent to about 268% of the foreign exchange reserves.
Media asked whether the sharp rise in Taiwanese stocks, the increase in the market value of foreign-held shares, and the growing scale of inbound and outbound capital flows would make it more difficult for the central bank to stabilize the exchange rate.
Tsai Chiong-min stated that while a high proportion of foreign-held shares and an increase in the scale of capital flows indeed pose challenges to the foreign exchange market, in April, the appreciation of the New Taiwan Dollar remained stable and moderate.
According to Financial Supervisory Commission statistics, foreign investors net remitted US$26.4 billion in April. After accounting for dividend remittances, the net foreign capital inflow in April was US$7 billion. Tsai Chiong-min pointed out that foreign capital flows both in and out, with profit-taking continuously occurring, especially in April, when TSMC distributed dividends, prompting foreign investors to remit funds after receiving dividends.
Despite significant fluctuations in foreign exchange reserves in the past two months, Tsai Chiong-min stated that this is not necessarily a constant trend and will still return to market conditions. If there are clear imbalances or large inflows/outflows on a few trading days, the central bank will naturally intensify its intervention efforts, but currently, foreign capital movements and the extent of appreciation are within controllable limits.
Regarding whether foreign investors are encouraged to use currency swap transactions to avoid exchange rate fluctuations, Tsai Chiong-min stated that foreign investors can already conduct swaps, and while the amount has recently increased, it is still much smaller compared to the overall buy and sell transactions. (Editor: Chang Chun-mao) 1150506
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(Central News Agency reporter Pan Tzu-yu, Taipei, 6th) The Central Bank today announced that its foreign exchange reserves amounted to US$602.488 billion at the end of April, an increase of US$5.602 billion from the previous month, once again exceeding the US$600 billion threshold. Tsai Chiong-min, Director-General of the Central Bank's Foreign Exchange Department, stated that the continued rise in Taiwanese stocks in April attracted foreign capital inflows, which at one point led to an imbalance in supply and demand in the New Taiwan Dollar foreign exchange market. The central bank's intervention by buying foreign currency was one of the factors boosting foreign exchange reserves.
Tsai Chiong-min explained three major factors that boosted foreign exchange reserves: first, investment gains were realized; second, the US dollar index weakened in April, leading to the appreciation of most currencies, which increased their value when converted to US dollars; third, foreign investors aggressively bought Taiwanese stocks, at one point exceeding NT$100 billion in a single day, causing a massive inflow that created an imbalance in supply and demand in the foreign exchange market, prompting the central bank to buy foreign currency for adjustment.
Reviewing the performance of stocks and foreign exchange in April, Taiwanese stocks surged by 7203.64 points in a single month, setting a record for the strongest monthly close. The strong momentum of Taiwanese stocks attracted hot money inflows, and the New Taiwan Dollar exchange rate simultaneously strengthened, appreciating by 0.332 NTD or 1.05% for the month, turning positive on a monthly basis.
As the market value of Taiwanese stocks held by foreign investors climbed, central bank statistics show that as of the end of April 2026, the market value of domestic stocks and bonds held by foreign investors, calculated at current market prices, together with their New Taiwan Dollar deposit balances, totaled US$1,614.9 billion, equivalent to about 268% of the foreign exchange reserves.
Media asked whether the sharp rise in Taiwanese stocks, the increase in the market value of foreign-held shares, and the growing scale of inbound and outbound capital flows would make it more difficult for the central bank to stabilize the exchange rate.
Tsai Chiong-min stated that while a high proportion of foreign-held shares and an increase in the scale of capital flows indeed pose challenges to the foreign exchange market, in April, the appreciation of the New Taiwan Dollar remained stable and moderate.
According to Financial Supervisory Commission statistics, foreign investors net remitted US$26.4 billion in April. After accounting for dividend remittances, the net foreign capital inflow in April was US$7 billion. Tsai Chiong-min pointed out that foreign capital flows both in and out, with profit-taking continuously occurring, especially in April, when TSMC distributed dividends, prompting foreign investors to remit funds after receiving dividends.
Despite significant fluctuations in foreign exchange reserves in the past two months, Tsai Chiong-min stated that this is not necessarily a constant trend and will still return to market conditions. If there are clear imbalances or large inflows/outflows on a few trading days, the central bank will naturally intensify its intervention efforts, but currently, foreign capital movements and the extent of appreciation are within controllable limits.
Regarding whether foreign investors are encouraged to use currency swap transactions to avoid exchange rate fluctuations, Tsai Chiong-min stated that foreign investors can already conduct swaps, and while the amount has recently increased, it is still much smaller compared to the overall buy and sell transactions. (Editor: Chang Chun-mao) 1150506
Stand with the facts; every sponsorship is a force for protecting press freedom.
Download the Central News Agency 'First-Hand News' APP to stay updated on the latest news.
The text, images, and videos on this website may not be reproduced, publicly broadcast, or publicly transmitted and utilized without authorization.