Central Bank of the Republic of China (Taiwan)

PRESS RELEASE      Release Date: November 19, 2021

BALANCE OF PAYMENTS (Q3 2021)

For the third quarter of 2021, the overall balance of payments posted a current account surplus of US$26.10 billion, a net asset increase of US$27.10 billion on the financial account, and an increase of US$3.07 billion in the Bank's reserve assets.

I. Current Account

The current account surplus decreased by US$3.47 billion over the same quarter of the previous year.

1. The goods trade surplus shrank by US$1.96 billion year on year to US$21.57 billion, mainly because of a larger increase in imports as export derived-demand strengthened, international raw material prices rallied, and domestic firms markedly stepped up expenditure on capital equipment.

2. The services account surplus widened by US$0.59 billion year on year to US$2.31 billion, mainly owing to an increase in freight proceeds.

3. Primary income surplus decreased by US$2.08 billion year on year to US$3.06 billion, mainly reflecting an increase in outward payments for nonresidents' income from portfolio investment.

4. The secondary income account deficit widened by US$0.02 billion year on year to US$0.84 billion, mainly owing to an increase in residents' outward remittances of allowances for family overseas.

II. Financial Account

1. The direct investment account registered a net asset increase of US$0.68 billion. Of the components, residents' direct investment abroad recorded a net increase of US$2.85 billion while inbound direct investment by foreign investors posted a net increase of US$2.17 billion.

2. Portfolio investment recorded a net asset increase of US$22.69 billion. Of the components, residents' portfolio investment abroad posted a net increase of US$14.74 billion, mainly because insurance firms increased investment in overseas debt securities. Nonresidents' portfolio investment registered a net decrease of US$7.95 billion mainly reflecting a reduction in local stock holdings by foreign investors.

3. Financial derivatives recorded a net asset increase of US$1.52 billion, mainly owing to a decrease in liabilities that reflected losses on disposal of financial derivatives by other financial institutions.

4. Other investment exhibited a net asset increase of US$2.20 billion, mainly because of increases in deposits made with and loans extended to foreign banks by the domestic banking sector.

III. Overview of BOP (Q1 - Q3, 2021)

For the first three quarters of 2021, the overall balance of payments posted a current account surplus of US$81.02 billion, a net asset increase of US$70.25 billion on the financial account, and an increase of US$17.24 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 23, 2022.
2. For the release schedule for the coming months, please visit the Bank's Advance Release Calendar on the official website.