By: Chiu Po-sheng and Frances Huang
Taipei, June 6 (CNA) Taiwan’s foreign exchange reserves at the end of May hit a record high, up slightly from a month earlier, even though foreign investors recorded a net fund outflow last month, according to the data released by the central bank.
Citing the statistics, the central bank said that forex reserves at the end of May rose US$248 million from a month earlier to US$433.43 billion. The bank said that foreign investors generally moved their funds out of Taiwan before May 20, when a new government was sworn in, but sentiments changed after May 20 with foreign investors starting to remit money back to Taipei.
The Financial Supervisory Commission (FSC), the top financial regulator in Taiwan, reported last week that foreign investors registered a net fund outflow worth US$2.91 billion in May.
Market analysts said that the fund outflow reflected worries over cross strait ties due to a power transition to the pro-independence Democratic Progressive Party government. [FULL STORY]