In addition, the central bank intervened in the local market last month to shore up the local currency, which weighed on overall foreign exchange reserves, Department of Foreign Exchange Director-General Eugene Tsai (蔡炯民) said during a news conference in Taipei. Euro, Hong Kong dollar, US dollar, Japanese yen, British pound and Chinese yuan banknotes are seen in a picture illustration taken on Jan. 21, 2016. Tsai linked the foreign fund outflow to a cash dividend distribution on the part of Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaker. Despite the retreat in foreign exchange reserves last month, Taiwan holds the world’s fourth-largest foreign exchange reserves after China, Japan and Switzerland, Tsai said. The central bank would maintain ample foreign exchange reserves to ensure stability in local financial markets and guard against any sudden fund outflows by foreign investors, he added.
