Central Bank of the Republic of China (Taiwan)
PRESS RELEASE                                         Release Date: August 20, 2020

BALANCE OF PAYMENTS (Q2 2020)
For the second quarter of 2020, the overall balance of payments registered a current account surplus of US$21.77 billion, a net asset increase of US$16.54 billion on the financial account, and an increase of US$6.96 billion in the Bank's reserve assets.
I. Current Account
The current account surplus increased by US$4.35 billion or 25.0% over the same quarter of the previous year.
1. The goods trade surplus expanded by US$1.10 billion year on year to US$15.49 billion. The increase was mainly because emerging applications such as those in 5G network technology and high performance computing and strong competitiveness in Taiwan's world-leading semiconductor firms contributed to a wider surplus in exports of electronic parts and components, offsetting the weak performance in exports of traditional industries amidst soft external demand and raw material price declines.
2. The services account posted a surplus of US$0.75 billion, compared to the US$1.22 billion deficit in the same quarter of the previous year, mainly owing to a smaller travel deficit.
3. The primary income surplus amounted to US$6.23 billion with a year-on-year increase of US$1.43 billion, mainly because of a decrease in outward banks' interest payments and an increase in residents' income from foreign direct investment.
4. The secondary income deficit widened by US$0.14 billion year on year to US$0.71 billion, mainly because of a decrease in inward remittances for family allowances and support.
II. Financial Account
1. The direct investment account registered a net asset increase of US$2.74 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$3.45 billion and US$0.71 billion, respectively.
2. Portfolio investment recorded a net asset increase of US$18.95 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$15.57 billion, mainly because of an increase in overseas debt securities investment by domestic insurers. Nonresidents' portfolio investment recorded a net decrease of US$3.38 billion mainly because foreign investors reduced share holdings in the Taiwanese stock market.
3. Financial derivatives exhibited a net asset increase of US$0.43 billion, mainly reflecting a decrease in liabilities as other financial institutions paid for loss on disposal of financial derivatives.
4. Other investment recorded a net asset decrease of US$5.57 billion, mainly owing to decreased foreign lending by the banking sector.

For the first two quarters of 2020, the overall balance of payments posted a current account surplus of US$39.88 billion, a net asset increase of US$33.98 billion on the financial account, and an increase of US$11.08 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, 2020.
2. For the release schedule for the upcoming months, please visit the Bank's website at https://www.cbc.gov.tw/en/cp-515-102276-849a0-2.html.