Breaking News, World News and Taiwan News.

Updated Friday, July 30, 2010 9:30 am TWN, CNA

Central bank set to auction NT$100 billion in NCDs

TAIPEI -- Taiwan's central bank announced yesterday that it will auction NT$100-billion-worth (US$3.12-billion-worth) of 364-day negotiable certificates of deposit (NCDs) in August, making it the fifth consecutive month it has conducted the move designed to retrieve capital from the market.

The long-term NCDs will be auctioned Aug. 9 to help contain liquidity in the financial system, the central bank said.

It issued NT$100 billion-worth of 364-day NCDs in April and May, with interest rates of 0.745 percent and 0.704 percent, respectively, followed by similar auctions in June and July.

The bank said that both short term and long-term NCDs can achieve the same effect as raising the reserve requirement, and that draining NT$400 billion through the issuance of NCDs represents a hike of 1.58 percentage points in the required deposit reserve ratio.

Subscribe to The China Post and save 25%. Click here

Share

Print

Email


Sponsors
▪	Buy china wholesale products from reliable chinese wholesalers on DHgate.com!
▪	Save 70% for hotel in Shanghai and 6000 hotels, in Beijing, Guangzhou, Shenzhen, and all China.
▪	Get the best deals for Guangzhou Hotels or choose from more than 10,000 hotels in 499 Chinese cities.
▪	Find great real time deals on China Flights. Book flights to China or China domestic flights 24/7.