Reported 8 months ago
According to the Financial Supervisory Commission, foreign currency deposits of local banks reached NT$14.5 trillion by the end of April 2024, marking a third consecutive month of hitting new highs. The increase in deposits is attributed to the anticipation of the US interest rate cut diminishing and the sustained high exchange rate of the US dollar. However, when converted into US dollar terms, the foreign currency deposit balance actually decreased in April, indicating a possible inflated value due to the appreciation of the dollar. Various factors such as corporate dividend distribution and fund allocation to higher-yield overseas bonds have influenced the fluctuation in foreign currency deposits. Forecasts on future trends differ among banking institutions, as some expect the deposit volume to remain high while others anticipate uncertainties ahead. Overall, the market anticipates a continued rise in foreign currency deposits with the US dollar exchange rate expected to stay elevated.
Source: YAHOO