Capital exits Taiwan for 9th straight quarter in Q3.
Taipei, Nov. 23, 2012 (CENS) -- Taiwan's policy to curb realty speculation and levy stock trading tax is dampening investment interest to force outflow of capital.
With limited investment channels, cash-abundant life insurers in Taiwan have been remitting capital abroad to look for investment options. As a result, Taiwan witnessed net outflow of US$8.15 billion in financial account in the third quarter for the ninth consecutive quarterly outflow, according to the central bank.
In the same quarter the current account registered a surplus of US$11.64 billion and the overall balance of payments recorded a surplus of US$3.7 billion. In the first three quarters the former rose to US$33.36 billion and the latter grew to US$11.9 billion; however, the net outflow of financial account totaled US$19.68 billion, with cumulated total of US$60.7 billion in the last nine quarters.
An official at the central bank indicated that balance of payments accounts, including current account, financial account and capital account, record monetary transactions between a country and the rest of the world, with the totals incurred by payments for a country's exports and imports, services, financial transfers.
The official added that Taiwanese have in recent years been quite fond of investing overseas. As a result, Taiwan experienced the ninth consecutive quarterly capital outflow of US$8.15 billion in the third quarter, during which direct overseas investment led to a net outflow of US$2.76 billion and investment in overseas securities caused an outflow of US$17.33 billion. ((Judy Li))
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|Publication:||The Taiwan Economic News|
|Article Type:||Brief article|
|Date:||Nov 23, 2012|
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