In addition to the basic principles of maintaining liquidity, security, and profitability, the Bank's utilization of foreign exchange reserves have also been dedicated in recent years to promoting economic development and industrial upgrading. For this purpose, the Bank has adopted 3 measures:

1. Through the foreign exchange market, the Bank appropriates the funds needed by domestic enterprises to import major items of machinery and equipment.

2. The Bank has already appropriated USD20 billion, EUR 1 billion, and JPY 60 billion as seed funds for the Taipei foreign currency call-loan market. This market has also established a computerized network system with brokerage firms in major international financial centers.

3. The Bank has deposited a portion of its foreign exchange reserves in the overseas branches of our domestic banks to promote international financial activities and to support the Taiwanese firms located there.

The bulk of these foreign exchange reserves are deposited in overseas correspondent banks with excellent ratings. Foreign exchange reserves in the US dollar account for a major share of total reserves, followed by the euro and the Japanese Yen. This composition is similar to those of other major central banks around the world.

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