The Central Bank of the Republic of China (CBC) has reduced its outstanding balance of negotiable certificates of deposit (CDs) to TWD 5.8604 trillion as of September 22, 2026. This figure represents a decline from the peak of TWD 7.42 trillion recorded at the end of 2025, marking a reduction of approximately 21% of the total stock.
In June 2026, the CBC lowered the monthly auction size for 364-day CDs from TWD 140 billion to TWD 120 billion, effective July 2026. This move marked the first such reduction in four years. Meanwhile, auctions for two-year CDs remained unchanged at TWD 25 billion per month.
The central bank maintains its policy rates at current levels, with the discount rate at 2%, secured refinancing at 2.375%, and temporary accommodations at 4.25%. The shift in liquidity management is intended to support financing needs in the electronics and artificial intelligence sectors.
Market participants characterize these adjustments as routine calibration rather than a signal of monetary easing. The bank aims to inject liquidity into the banking system to facilitate lending, moving away from its historical practice of absorbing excess cash generated by trade surpluses.
