Taiwan foreign exchange reserves fall to $594.27 billion in July 2026

Record $28 billion in July remittances and central bank market-stabilization operations drove a second monthly reserve decline, even as renewed foreign inflows later lifted the Taiwan dollar to a nearly three-week high.

Summary

Taiwan's foreign exchange reserves fell to $594.27 billion at the end of July 2026 from $597.15 billion in June, their lowest level since May 2025 and a second straight monthly decline. The central bank said record net foreign remittances of $28 billion, including earnings and dividends, together with reserve investment and usage, exchange-rate moves and intervention to supply U.S. dollar liquidity, were the main drivers, although stronger non-dollar currencies partly supported valuations. Foreign holdings of Taiwan stocks, bonds and New Taiwan dollar deposits were about $1.6631 trillion, or roughly 280% of reserves, while renewed hot-money inflows later helped the Taiwan dollar close at NT$32.261 on the 6th, its strongest level in nearly three weeks.

Terms & Concepts
  • Foreign exchange reserves: Foreign assets held by a central bank, typically in major currencies and government securities, that can be used to manage currency liquidity and support market stability.
  • Non-deliverable forwards: Offshore foreign-exchange contracts that are settled in cash rather than by delivering the underlying currency, often used to gauge market expectations for currencies such as the Taiwan dollar.
  • Risk reversals: An options-market measure comparing demand for upside versus downside protection, commonly used as an indicator of whether sentiment is turning more bullish or bearish on a currency.