Sovereign funds cannot use foreign exchange reserves? The central bank clarified: Yang Jinlong said that Taiwan has the strength to establish a sovereign fund

In response to some media reports that Yang Jinlong, the governor of the central bank, said that sovereign funds should not use foreign exchange reserves, the central bank issued a clarification today stating that relevant reports were inconsistent with the facts. When answering questions, Yang Jinlong said that Taiwan has the economic strength to establish a sovereign fund and has never mentioned that sovereign funds should not use foreign exchange reserves.

Yang Jinlong went to the Finance Committee of the Legislative Yuan today for consultation. In response to the legislators' concerns about the preparation of sovereign funds, he said that many major advanced countries have promoted sovereign funds, and Taiwan also has this capability. The National Development Council is currently leading the planning. As long as it is carried out step by step and prudently, it will be launched when the time is right. There is no question of "good or bad timing."

As for whether to establish a sovereign fund, Yang Jinlong said that the decision should be based on Taiwan's own strength and needs, and should maintain its own opinions and plans, rather than acting according to outside opinions.

However, some media reported that Yang Jinlong "stressed that sovereign funds should not use foreign exchange reserves. After all, foreign exchange reserves have specific legal responsibilities to stabilize the economy." The central bank clarified that Yang Jinlong did not make the above statement when answering questions, and the relevant reports were inconsistent with the facts.