Central bank adjusting forex reserves‘NOT NERVOUS’: Taiwan’s exposure to US dollar-denominated assets was 20 times its foreign exchange market size, the central bank head said, disputing an IMF estimateStaff writer, with CNAThe central bank has adopted dynamic adjustments in its portfolio management of Taiwan’s foreign exchange reserves to reduce possible risks from fluctuations in US Treasury bonds, central bank Governor Yang Chin-long (楊金龍) said yesterday. Yang said the central bank would seek to lower risks in foreign exchange reserves by cutting or adjusting US Treasury bond positions. As of the end of last year, Taiwan’s foreign exchange reserves was US$602.55 billion, its second-highest ever, central bank data showed. Therefore, the central bank would have no need to use any of the country’s foreign exchange reserves as credit guarantees in the short term, Yang added. Taiwan’s surplus savings is NT$5.42 trillion (US$172.02 billion), enough to support overseas investments by Taiwanese enterprises, the central bank said.
