BALANCE OF PAYMENTS
PRESS RELEASE Release Date: May 20, 2015
BALANCE OF PAYMENTS
For the first quarter of 2015, the overall balance of payments posted a surplus of US$3.81 billion, reflecting an increase in the Bank's reserve assets. The current account registered a surplus of US$22.00 billion and the financial account showed a net outflow of US$18.84 billion.
In the current account, a larger decrease in exports of oil-related products and plastics & chemicals resulting from higher international oil prices in the same quarter of the previous year led exports to decrease by 4.0% year on year. Imports also contracted by 15.2% year on year, owing to oil price falls and a decline in imports of capital equipment. As the decrease in imports was greater than that in exports, the goods trade surplus widened by US$7.09 billion to US$13.96 billion, compared to the same period of the previous year. Among the components, the deficit on mineral products narrowed by US$5.96 billion year on year.
The services account surplus rose to US$3.02 billion with a year-on-year increase of US$0.05 billion, mainly because of larger net proceeds from merchanting. The income account surplus grew by US$0.20 billion year on year to US$5.81 billion, mostly attributable to increased investment income from foreign exchange assets. The current transfers deficit registered a year-on-year increase of US$0.40 billion to US$0.78 billion, reflecting an uptick in workers’ outward remittances.
Overall, the current account surplus of the first quarter of 2015 expanded by US$6.95 billion or 46.1% year on year, as surpluses on goods trade balance, services account, and income account offset the impact of a wider current transfer deficit.
In the financial account, direct and portfolio investment posted net outflows of US$1.66 billion and US$9.58 billion, respectively. Residents' portfolio investment abroad exhibited a net outflow of US$14.22 billion, primarily resulting from higher investment in foreign securities by insurance companies. Non-residents' portfolio investment recorded a net inflow of US$4.64 billion, mainly accounted for by increasing foreign investment in the Taiwanese stock markets. Financial derivatives registered a net outflow of US$0.35 billion, while other investment showed a net outflow of US$7.24 billion as banks utilized a foreign currency liquidity flush to increase repayments for borrowings from their overseas branches.
Notes:
1. The next balance of payments data will be released at 16:20 p.m. on August 20, 2015.
2. For the release schedule for the next six months, please check the CBC website at http://www.cbc.gov.tw/ct.asp?xItem=30164&ctNode=515&mp=2.