Central Bank of China

PRESS RELEASE Release Date: March 5, 2004




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FOREIGN EXCHANGE RESERVES AS AT

END OF FEBRUARY, 2004

The Foreign Exchange Reserves of the Republic of China amounted to US$224.80 billion at the end of February 2004, showing an increase of US$9,877 million from the figure recorded at the end of last month and an increase of US$18,171 million compared to the end of last year.

The main factors responsible for the increase in foreign exchange reserves in February 2004 are :

1.Net foreign capital inflows(including convertible bonds and GDR issued abroad), US$1.5 billion

2.Exporters have sold forward foreign exchange in advance, US$4.7 billion

3.Returns from foreign exchange reserves management

4.The Euro and other international currencies appreciated against the US dollar. Foreign exchange reserves denominated in these currencies were worth more in terms of the US dollar.

The aforesaid items 1, Foreign capital inflows, tend to be short-term in nature and are subject to sudden reversal. Item 2, Selling forward foreign exchange in advance, will reduce the future supply of foreign exchange.


Note: The next dissemination will be made at 16:20 p.m. on April 5, 2004;

the advance release calendar can be accessed on our website at: http://www.cbc.gov.tw/EngHome/ESDDS/calacal.asp