FSC: Taiwan-U.S. Interest Rate Spread Widens, Hedging Costs Increase, Perfect Timing to Guide Funds Back to Taiwan

Reported 12 months ago

FSC Chairperson, Huang Tien-Ming, stated that in recent years, the Taiwan-U.S. interest rate spread has widened, and hedging costs have increased, leading to increased risks in overseas investments by the insurance industry. He believes it is an opportune time for insurance industry funds to return to Taiwan, especially if there are construction projects available. By expanding public construction projects, insurance industry funds can stay in Taiwan, help the industry to deploy funds, and reduce operational risks, according to Huang. Lawmakers inquired about past issues with insurance industry investments in public construction, and Huang pointed out the changed circumstances that make the current time suitable for discussing investments in public projects.

Source: YAHOO

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