Taiwan should watch out for aftereffects of the UK’s decision to leave the European Union over the next two years. That’s according to Financial Supervisory Commission (FSC) Chairman Ding Kung-wha.
Ding was speaking to the Legislature’s finance committee on Wednesday. He said that while markets have made a recovery since last week’s vote in the UK, international observers believe financial institutions leaving the UK could affect the country’s position as a global financial center.
Ding said the FSC is gathering information from countries impacted by the decision, including the US, Japan, and European countries. He said that while the short-term shock brought on by the decision may have begun to settle, international financial institutions say the aftereffects of the move could take two years to dissipate.
Ding said that the UK accounts for only 1.8% of Taiwan’s direct trade. He said that Taiwan’s financial investments in the UK are mostly denominated in dollars, with only insurance firms’ investments in UK real estate in pounds. But Ding said that the impact the UK’s decision will have on China, the US, and Japan could have an indirect impact on Taiwan.