Taiwan Banks’ Foreign-Currency Deposits Hit Record NT$15.4 Trillion in February

Foreign-currency deposits are a key repository for export proceeds, cross-border operating funds and foreign-exchange investments, making their balance a gauge of currency moves and corporate liquidity needs. Elevated holdings at Taiwan’s domestic banks point to sustained demand among exporters and companies to retain funds in foreign currencies as they manage payments, investment and exchange-rate exposure.

Foreign-currency deposits at Taiwan’s domestic banks rose to a record NT$15.68 trillion as of March 31, 2026, remaining above NT$15 trillion for a sixth consecutive month. The latest increase was driven by the Taiwan-dollar translation effect of a stronger US dollar and continued export receipts from artificial intelligence-related industries, whose robust overseas sales added to corporate foreign-currency balances.

Foreign-currency deposits at Taiwan’s domestic banks reflect the amount of U.S. dollars and other foreign currencies held by companies and individuals, while also affecting banks’ foreign-currency liquidity and lending capacity. In early 2026, companies’ growing need for foreign currency for cross-border transactions, trade payments and treasury management kept such deposits above NT$15 trillion, making them a key gauge of fund flows.

The Financial Supervisory Commission’s latest data showed that foreign-currency deposits at domestic banks exceeded NT$15.26 trillion at the end of January 2026. Although down from their peak, they remained at the second-highest level on record. Corporate clients’ treasury operations and trade payments were the main factors. Six major banks, including CTBC Bank, Taipei Fubon Bank and Mega International Commercial Bank, each continued to hold more than NT$1 trillion in foreign-currency deposits.

Foreign-currency deposits reflect export proceeds, overseas investment funds and hedging demand among companies, making them an important gauge of foreign-exchange liquidity in Taiwan’s banking system. Financial Supervisory Commission data show that corporate revenue and investment funds continued to flow into such accounts. Expansion and higher capital spending across the AI supply chain also boosted demand for corporate foreign-currency financing.

The FSC said foreign-currency deposits at domestic banks approached NT$15.4 trillion at the end of December 2025, setting a record for the sixth consecutive month. Driven by demand from the AI industry, outstanding foreign-currency loans rose 30.57% from a year earlier and recorded double-digit annual growth for the eighth straight month, indicating that funding demand among related companies remained strong.