Central Bank of the Republic of China (Taiwan)

PRESS RELEASE                                   Release Date: November 20, 2020

BALANCE OF PAYMENTS (Q3 2020)

For the third quarter of 2020, the overall balance of payments registered a current account surplus of US$28.65 billion, a net asset increase of US$19.14 billion on the financial account, and an increase of US$9.42 billion in the Bank's reserve assets.

I. Current Account

The current account surplus increased by US$15.00 billion over the same quarter of the previous year.

1. The goods trade surplus expanded by US$6.96 billion year on year to US$23.47 billion, mainly bolstered by orders for technology applications related to remote-working and 5G network and greater restocking demand for the latest electronic products.

2. The services account posted a surplus of US$1.68 billion, compared to the US$1.85 billion deficit in the same quarter of the previous year, mainly because of a smaller travel deficit.

3. Primary income posted a surplus of US$4.34 billion, compared to a US$0.45 billion deficit of the same period last year, mainly owing to an increase in residents' income from outward foreign direct investment and decreases in nonresidents' income from portfolio investments and banks' outward interest payments.

4. The secondary income account deficit widened by US$0.26 billion to US$0.83 billion, mainly because of an increase in workers' outward remittances.

II. Financial Account

1. The direct investment account registered a net asset increase of US$1.50 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$4.54 billion and US$3.04 billion, respectively.

2. Portfolio investment recorded a net asset increase of US$16.48 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$8.63 billion, mainly owing to an increase in overseas debt securities investment by onshore funds and domestic insurers. Nonresidents' portfolio investment recorded a net decrease of US$7.85 billion mainly because foreign investors reduced share holdings in the Taiwanese stock market.

3. Financial derivatives exhibited a net asset increase of US$0.19 billion, mainly owing to a decrease in liabilities as other financial institutions paid for loss on disposal of financial derivatives.

4. Other investment recorded a net asset increase of US$0.98 billion, mainly reflecting increases in banks' repayments for foreign borrowing and their deposits with overseas branches.

III. Overview of BOP (Q1 - Q3, 2020)

For the first three quarters of 2020, the overall balance of payments posted a current account surplus of US$65.91 billion, a net asset increase of US$48.49 billion on the financial account, and an increase of US$20.50 billion in the Bank's reserve assets.

Notes:

1. The next balance of payments data will be released at 16:20 p.m. on February 26, 2021.

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.