Central bank strongly objects to SWF

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

Taipei Times
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]

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