Central Bank of the Republic of China (Taiwan)
PRESS RELEASE                                                                 Release Date: February 26, 2021

BALANCE OF PAYMENTS (Q4 2020)
For the fourth quarter of 2020, the overall balance of payments registered a current account surplus of US$27.33 billion, a net asset increase of US$2.22 billion on the financial account, and an increase of US$27.84 billion in the Bank's reserve assets.
I. Current Account
The current account surplus increased by US$10.37 billion over the same quarter of the previous year.

1. The goods trade surplus expanded by US$8.90 billion year on year to US$23.04 billion, mainly bolstered by orders for emerging technology applications and remote working-related products, as well as rising demand for traditional manufacturing goods.
2. The services account recorded a surplus of US$1.38 billion compared to the US$1.02 billion deficit in the same quarter of the previous year, mainly because of an increase in freight proceeds and a smaller travel deficit.
3. Primary income surplus shrank by US$1.11 billion year on year to US$3.66 billion, mainly owing to decreases in residents' income from outward foreign direct investment and in banks' overseas interest income.
4. The secondary income account deficit narrowed by US$0.18 billion to US$0.75 billion, mainly because of a decrease in expenditures on gifts and samples.  

II. Financial Account

1. The direct investment account posted a net asset decrease of US$0.02 billion. Of the components, residents' direct investment abroad and inbound direct investment by foreign investors recorded net increases of US$3.54 billion and US$3.56 billion, respectively.
2. Portfolio investment recorded a net asset increase of US$1.91 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$6.29 billion, mainly owing to a rise in overseas debt securities investment by the banking sector and domestic insurers. Nonresidents' portfolio investment recorded a net increase of US$4.38 billion mainly because foreign investors boosted their holdings of Taiwanese securities.
3. Financial derivatives registered a net asset decrease of US$1.26 billion, mainly owing to a decrease in assets as other financial institutions received gains from disposal of financial derivatives.
4. Other investment recorded a net asset increase of US$1.59 billion, mainly reflecting increases in banks' overseas interbank lending and repayments for foreign borrowing.

III. Overview of BOP (2020)

For the entire year of 2020, the overall balance of payments posted a current account surplus of US$94.28 billion, a net asset increase of US$50.04 billion on the financial account, and an increase of US$48.34 billion in the Bank's reserve assets.

Notes:

1. The next balance of payments data will be released at 16:20 on May 20, 2021.
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.