Central Bank of China

PRESS RELEASE Release Date: May 20, 2001




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BALANCE OF PAYMENTS

For the first quarter of the year 2002, the current account of the country registered a surplus of US$7,152 million, while outflows of financial capital amounted to US$1,094 million and reserves increased by US$6,221 million.

This quarter's current account surplus represented the highest quarterly figure on record. The main reasons were as follows:

1. Imports registered a greater reduction than exports, causing the goods surplus to reach US$6,338 million, second only to the corresponding figure of the last quarter.

2. Net proceeds from merchanting increased and residents' traveling expenses decreased, both of which led to a narrower services deficit.

3. Payments of investment income to non-residents and interest payments by domestic banks both decreased, leading to a rise in net receipts of income.

The financial account recorded a net outflow of US$1,094 million for the first quarter, largely attributable to residents' portfolio and direct investment abroad. Broken down by the components of the financial account, direct investments showed a net outflow of US$631 million, which reflected larger direct investment abroad by residents than foreign direct investment in the local market. A net outflow of US$509 million was recorded in portfolio investment mainly because of the US$4,744 million outflow of residents' portfolio investments abroad. Nevertheless, foreign portfolio investment in the local market still exhibited a net inflow of US$4,235 million, indicating confidence of foreign investors in the prospects of the Taiwan stock market.

Notes: 1. The upcoming balance of payments data to be released at 16:00 on August 20, 2002.

2. For the release schedule for the next six months, check the CBC website at: http://www.cbc.gov.tw/account/index.html.


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