Funds remitted into Taiwan by foreign portfolio investors should be invested in the local securities markets
PRESS RELEASE Released Date: February 5, 2008
Funds remitted into Taiwan by foreign portfolio investors
should be invested in the local securities markets
A number of foreign investors have not invested the funds they have remitted into Taiwan in the local securities markets even though that was the designated purpose filed by these same investors when their funds were converted into NT dollars. Similarly, some foreign investors have invested only a small portion of remitted funds in the local equity markets, while keeping most of their funds in NT dollar deposit accounts.
During a meeting with a group of custodian banks that cater for foreign portfolio investors this morning, the Central Bank of the Republic of China (Taiwan) instructed these banks to tell their clients that funds remitted into Taiwan must be deployed in a manner that is consistent with the designated purpose they had filed. This is to prevent foreign investors from using the equity markets as a guise for speculating in the local currency market.