Country sees net outflow in financial account in Q3

According to the report released earlier this week, a net outflow in Taiwan's financial account during the July-September period totaled US$8.15 billion, the highest level so far this year.

A financial account includes direct investments and portfolios investments in a country.

Although the third quarter was the ninth consecutive quarter for Taiwan to register a net outflow in the financial account, Lin Shu-hua, deputy chief of the central bank's economic research department, said as local investors tended to make overseas investments, such a trend in financial account flows remained normal.

On the back of low interest rates in the domestic market and booming economic fundamentals in United States and Europe, Taiwan's financial account had once showed a net outflow for 10 quarters in a row between 2005 and 2007, the central bank's statistics showed.

In the third quarter of this year, local residents' portfolio investment abroad in the financial account exhibited a net outflow of US$17.21 billion, hitting a record quarterly high, largely due to an increase in foreign bond investments by life insurers and overseas equity investments.

During the same period, however, other investments in the financial account registered a net inflow of US$11.82 billion, reflecting overseas deposit withdrawals by local banks and foreign borrowing by the private sector.

SHARE CLOSE
Blogger		Google+
Live Journal		Plurk
Stumble Upon

Tweet

	PREVIOUS ARTICLE
	Ma does charity work for KMT anniversary

NEXT ARTICLE
Protests against toxicant chemicals held at Taipei's ZARA flagship store

Write a Comment

Terms

Enter your comments - 3000 characters max

Type in image code

 Receive China Post promos
 Respond to this email

Submit