BALANCE OF PAYMENTS (Q1 2020)

For the first quarter of 2020, the overall balance of payments recorded a current account surplus of US$18.16 billion, a net asset increase of US$17.08 billion on the financial account, and an increase of US$4.13 billion in the Bank's reserve assets.

I.Current Account

The current account surplus rose by US$1.05 billion or 6.1% over the same quarter of the previous year.

1.The goods trade surplus decreased by US$0.19 billion year on year to US$12.41 billion. Exports and imports shrank by US$2.48 billion and US$2.29 billion, respectively, as the spread of the COVID-19 pandemic has caused serious supply and demand shocks to the global economy and international raw material prices plunged.

2.The services deficit narrowed by US$0.38 billion year on year to US$0.61 billion, mainly induced by a smaller travel deficit.

3.The primary income account registered a surplus of US$7.21 billion, with a year-on-year increase of US$0.94 billion, mainly owing to a decrease in banks' outward interest payments.

4.The secondary income deficit widened by US$0.08 billion year on year to US$0.85 billion, mainly because of an increase in workers' outward remittances.

II.Financial Account

1.The net assets in direct investment expanded by US$1.36 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors posted net increases of US$2.38 billion and US$1.01 billion, respectively.

2.Portfolio investment registered a net asset increase of US$23.67 billion. Of the components, residents' portfolio investment abroad recorded a net increase of US$6.01 billion, mainly on account of greater overseas securities investment by domestic insurers and the banking sector. Non-residents' portfolio investment exhibited a net decrease of US$17.65 billion as foreign investors pared down their local stock holdings.

3.Net assets in financial derivatives grew by US$1.09 billion, mainly because of decreased liabilities as other financial institutions paid for loss on disposal of financial derivatives.

4.Net assets in other investment dropped by US$9.05 billion, mainly accounted for by foreign borrowings by the banking sector.

Notes: 1. The next balance of payments data will be released at 16:20 p.m. on   August 20, 2020.
2. For the release schedule for the coming months, please visit the Bank's website at:
https://www.cbc.gov.tw/en/cp-515-102276-849a0-2.html.