EDITORIAL: Wealth fund proposal lacks reasonSome opposition lawmakers have proposed tasking the central bank with creating a sovereign wealth fund financed by the nation’s foreign exchange reserves to boost investment returns. Taiwan has the world’s fourth-largest foreign exchange reserves, which last month rose for a record sixth consecutive month. Norway’s sovereign wealth fund, the Norwegian Government Pension Fund Global, the biggest of its kind, lost US$167 billion last year, with an annual return rate of minus-13.9 percent. Large foreign exchange reserves are a protection tool and can provide emergency capital for local lenders during tough times. Before the government can consider setting up a new sovereign wealth fund, there are several questions that need to be answered: What is the purpose of setting up a new fund?

Source: Taipei Times May 15, 2023 21:40 UTC