TAIPEI (Taiwan News) — Premier Cho Jung-tai (卓榮泰) said on Tuesday the government has not moved forward with any plans to use the National Financial Stabilization Fund to buttress the market against the effects of US tariffs.
Speaking to reporters outside the legislature, Cho said using the national stabilization fund requires careful consideration to ensure the government manages Taiwan's finances responsibly, per CNA. He said the government would judge the situation as it develops.
The National Financial Stabilization Fund is a NT$500 billion (US$15.16 billion) resource the Cabinet can use to intervene in markets during “major external events.” On Monday, the finance ministry said the fund would monitor market conditions and not rule out convening a committee in response.
Noting the Taiwan stock market’s over 2,000-point loss on Monday, Cho said that the Cabinet, the Financial Supervisory Commission, and the Central Bank had prepared for the impacts of US tariffs over the weekend. He hoped Taiwan’s stock market and economic health would stay strong and withstand another test today.
Cho said using the National Financial Stabilization Fund is not a matter of a simple Cabinet declaration. He said any decision regarding its use involves factors like time and market changes.
The finance ministry’s Monday statement said that Taiwan’s stock market often follows movements in US markets. “Under these circumstances, the Taiwan stock market faces short-term volatility,” it said.
The Cabinet allocated NT$88 billion to assist industries preparing to face the tariffs on Friday. The Cabinet also said it would provide exporters credit guarantees, insurance, and tax benefits.
