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Tabletop exercise highlights financial security
The Taiwan Center for Security Studies says the government needs to take precautions to prevent a financial blockade by international banks and ensure that it has enough capital to purchase wartime necessities.
This comes as the center hosted the TTX Tabletop Exercise designed to cover different fields from financial to energy security, as well as the continued functioning of industries during wartime.
The exercise also studied the possibility that internal banks might face pressure to impose a financial blockade on Taiwan and it concluded that such a blockade could result in Taiwan's foreign-exchange reserves being transferred out of those banks' accounts.
The Center for Security Studies says to prevent this from happening, Taiwan could enter into agreements with countries that support it to establish mechanisms for drawing on its foreign reserves to ensure it could purchase wartime necessities.
The center also says the government should borrow from international capital markets during peacetime, and if the borrowing limit is reached, state-run banks and enterprises and local governments should be allowed to issue national debt, but under strict supervision.
Chinese Culture University adjunct professor Chen Song-xing is suggesting that Taiwan could make an arrangement with the U-S Fed and the Bank of Japan to use foreign capital reserves during wartime.
