| Summary: | 碩士 === 東吳大學 === 國際貿易學系 === 94 === Recently，the foreign exchange reserve of Taiwan is growing rapidly. Besides of balance of trade, the intervention of central bank in foreign exchange market contributes to the increase of foreign exchange reserve. The central bank plays an important role in the decision of the exchange rate of NT dollars. The purpose of the paper is to find (1) the amount and the indicators of central bank’s intervention, (2) the different indicators of central bank’s intervention before and after Asian economic storm, (3)the reasons influencing the exchange rate of NT dollars. I adopt Ordinary Least Square (OLS) method to build models. The period of samples is from 1987/7 to 2005/7. The main findings of this paper are summarized as follows :1.The central bank’s intervention influences above 50% of the changes of foreign exchange reserve of Taiwan. 2.The central bank intervenes leaning against the wind to decrease the volatility of exchange rate.3.When the price level is going up, the central bank usually allows NT dollars to appreciate.4.The intervention is taken step by step to reduce the volatility of exchange rate.5.The foreign capital inflow is one of the important indicators after Asian economic crisis.6.NT dollars appreciate due to higher economic growth or higher domestic interest rate, and depreciate due to the higher unlabored rate.7.The trend of NT dollars exchange rate is usually as same as YEN or WON.
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