Central Bank to Contribute NT$180B. to Treasury in 2013

Taipei, Dec. 13, 2012 (CENS)--Taiwan's central bank is expected to contribute profits of NT$180 billion (US$6 billion) to the national vault in 2013, the same amount as this year and estimated to be 10.4% of the government's total revenue.

F. N. Perng, governor of the central bank, says the central bank's major revenue is from interest margins and investments in foreign currencies held, which fluctuate according to markets, so advises the government not to over-depend on such revenue to avoid disappointment.

Perng pointed out that interest rates globally are very low as the major economies have recently lowered rates. For instance, the United States has cut interest rate to 0.17% per annum and that of treasury bonds to 0.1%-0.14%.

The interest rates on three-year bonds based in the U.S. dollar, euro, and the Japanese yen globally are 0.32%, 0.07% and 0.1%, respectively, which are shy of the return rate of 2.5% expected by the central bank in Taiwan of its investments in foreign currency be launched in 2013.

Nevertheless, the central bank has accumulated profits of NT$2.67 trillion (US$89 billion) over the last 14 years and boast a share of over 10% of the government's total revenues.