Print

Mail

wiki links

Central Bank governor discusses SWF

Central Bank Governor Perng Fai-nan (彭淮南) yesterday told legislators that he does not oppose the idea of a Taiwanese sovereign wealth fund (SWF).

"The government pension, labor and development funds total more than NT$1.7 trillion [US$55.5 billion], NT$400 billion of which has been put into overseas investments. Part of that could be used to set up a Taiwanese sovereign wealth fund," Perng told a legislative session, adding that the government could also raise capital through issuing bonds.

But Perng did not say whether part of the nation's foreign reserves should be used to set up such a fund to invest overseas and maximize capital gains.

He did say, however, that such a fund shouldn't be managed by the central bank.

Instead, specialized laws and an independent commission should be created to regulate the SWF. Such funds are often used to maximize gains by pursuing higher risk products, Perng said, urging the government to prudently assess the feasibility of such a fund.

Nearly 70 percent of the world's SWFs are owned by oil-exporting countries such as Abu Dhabi, he said.
This story has been viewed 1440 times.