Central Bank of the Republic of China (Taiwan)

PRESS RELEASE                                Release Date: August 20, 2019

  BALANCE OF PAYMENTS (Q2 2019)

For the second quarter of 2019, the overall balance of payments registered a current account surplus of US$17.56 billion, a net asset increase of US$13.70 billion in the financial account, and an increase of US$2.45 billion in the Bank's reserve assets.

I.        Current Account

The current account surplus decreased by US$0.18 billion or 1.0% over the same quarter of the previous year.

1.  The goods trade surplus shrank by US$3.58 billion year on year to US$14.42 billion. Exports declined by US$8.52 billion as the unresolved US-China trade conflict weighed on global economic growth and international raw material prices remained low. Imports decreased by US$4.94 billion year on year owing to softer export-derived demand.

2.  The services account deficit narrowed by US$1.16 billion year on year to US$1.03 billion, mainly owing to an increase in travel receipts.

3.  The primary income surplus widened by US$2.07 billion year on year to US$4.74 billion, mainly owing to a decrease in outward payments for nonresidents' direct investment income.

4.  The secondary income account deficit declined by US$0.17 billion year on year to US$0.58 billion, mainly because inward remittances for family allowances/support and those by residents working overseas increased while outward remittances decreased.

II.     Financial Account

1.  The direct investment account registered a net asset increase of US$2.23 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$3.48 billion and US$1.25 billion, respectively.

2.  Portfolio investment recorded a net asset increase of US$10.44 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$10.16 billion, mainly because of an increase in overseas debt securities investment by onshore funds and domestic insurers. Nonresidents' portfolio investment recorded a net decrease of US$0.29 billion mainly because foreign investors pared down their holdings in the Taiwanese stock market.

3.  Financial derivatives exhibited a net asset increase of US$1.86 billion, mainly because of reduced liabilities as other financial institutions paid for loss on disposal of financial derivatives.

4.  Other investment recorded a net asset decrease of US$0.83 billion, mainly owing to decreases in banks' deposits with and loans to overseas branches and other banks.

For the first two quarters of 2019, the overall balance of payments showed a current account surplus of US$34.80 billion, a net asset increase of US$30.92 billion on the financial account, and an increase of US$5.17 billion in the Bank's reserve assets.

Notes:

1. The next balance of payments data will be released at 16:20 p.m. on November 20, 2019.

2. For the release schedule for the upcoming months, please check the CBC website at https://www.cbc.gov.tw/ct.asp?xItem=30164&ctNode=515&mp=2.