NOT PLAYING:The central bank said that unlike foreign exchange reserve management, SWFs entail high risk, and that any SWF would have to buy its currencies on the market
Date: Jul 14, 2015
By: Crystal Hsu / Staff reporter
The central bank yesterday voiced objections to a proposal to turn foreign exchange reserves into a sovereign wealth fund (SWF) aimed at stimulating the nation’s economy.
Academics have advised Premier Mao Chi-kuo (毛治國) to establish an SWF using foreign exchange reserves to generate higher returns that would benefit the economy as a whole.
“If an SWF is necessary, the government should first seek to pass a law for its establishment, management and oversight so it can operate legally,” the central bank said in a statement. [FULL STORY]