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Azerbaijani banks buy over $70M through auction

Posted on 28 September 2016 by VRS  |  Email |Print

Some $70.2 million were sold to 20 Azerbaijani banks through an auction held by the Central Bank of Azerbaijan (CBA) Sept. 27, CBA said in a message Sept. 27.
As much as $100 million was put up for the auction. SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million……………………………………Full Article: Source

Oil Fund and Central Bank of Azerbaijan hold currency oversupply

Posted on 28 September 2016 by VRS  |  Email |Print

The State Oil Fund (SOFAZ) and the Central Bank hold the currency oversupply during its centralized sale of foreign currency to banks. SOFAZ reports that today the Central Bank (CBA) has held the next foreign exchange auction. “At the auction SOFAZ, putting an application for $100 million, sold $70.2 million to 20 banks,” SOFAZ said.
In its turn, the CBA announced the putting the application for $50 million. As a result, total application from these two organizations made up $150 million, exceeding the demand at the auction by 2.14-fold. At the previous auction their total supply exceeded the demand by 2.44-fold……………………………………Full Article: Source

Azeri oil fund Sofaz sells $70 mln on market on Tuesday

Posted on 28 September 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund Sofaz said it had sold $70 million on the foreign exchange market on Tuesday.
Sofaz and Azerbaijan’s central bank offered a total of $150 million at Tuesday’s auction, the central bank said, adding that demand totalled $70.2 million……………………………………Full Article: Source

SOFAZ’s transfers to state budget to be cut by 1.5B AZN

Posted on 27 September 2016 by VRS  |  Email |Print

Transfers from the State Oil Fund of Azerbaijan (SOFAZ) to the state budget will be reduced by 1.5 billion manats (official exchange rate for Sept. 26 is 1.6292 AZN/USD) in 2017, Samir Sharifov, Azerbaijani finance minister, told reporters in Baku Sept. 26.
The minister added that the transfers will be reduced to keep the country’s foreign exchange reserves at the same level. “As Azerbaijani President Ilham Aliyev said, while generating the revenue side of the state budget, we must pay more attention to the income from other sources, rather than deductions from SOFAZ,” he said……………………………………..Full Article: Source

Transfers from SOFAZ

Posted on 27 September 2016 by VRS  |  Email |Print

The transfers of the State Oil Fund of Azerbaijan (SOFAZ) to the state budget are expected to be lower than the indices fixed in 2016. Transfers from the State Oil Fund of Azerbaijan (SOFAZ) to the state budget will be reduced by 1.5 billion manats ($0.92) in 2017, as the country must pay more attention to the income from other sources, rather than deductions from SOFAZ, while generating the revenue side of the state budget.
SOFAZ’s transfers to the Azerbaijani state budget 2016 are forecasted to stand at 7.6 billion manat ($4.6), while the index for 2017 is forecasted at 6.1 billion manat ($3.7). SOFAZ’s transfers to the Azerbaijani state budget 2016 are forecasted to stand at 7.6 billion manat ($4.6), while the index for 2017 is forecasted at 6.1 billion manat ($3.7)……………………………………..Full Article: Source

Saudi Aramco evaluating foreign exchanges for 2018

Posted on 27 September 2016 by VRS  |  Email |Print

Saudi Aramco is looking at a number of foreign exchanges, including London, New York and Hong Kong, for a partial listing of the oil giant in 2018, chief executive Amin Nasser said. The state-oil firm plans to list as much as 5 per cent on Saudi Arabia’s stock exchange, the Tadawul, and at least one foreign exchange as part of efforts to wean the country’s economy away from hydrocarbon sales.
The oil giant is estimated to be worth as much as $2.5 trillion (Dh9.2 trillion) by conservative valuations. Revenue from the partial listing is to be used by a sovereign wealth fund to diversify the economy……………………………………..Full Article: Source

Pretty Much Every Norwegian Citizen Is a Millionnaire

Posted on 23 September 2016 by VRS  |  Email |Print

Norway’s “Pension Fund Global” is the biggest sovereign-wealth fund in the world, worth an estimated $882B (more than double the national GDP). Not bad for a country with a population of just over 5m people.
It owns 2% of all listed shares in Europe and over 1% globally. Plus, contrary to the way most funds are structured, it’s incredibly transparent by detailing every investment it makes online. The fund refuses to invest in firms with products deemed “unethical,” such as tobacco and weapons. It also acts as an activist of sorts by “blacklisting” corrupt companies, including those that misuse water and energy or engage in child labor………………………………………Full Article: Source

Azerbaijani banks buy over $60M from State Oil Fund

Posted on 23 September 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $61.4 million to 19 banks through an auction held by the Central Bank of Azerbaijan (CBA) Sept. 22, SOFAZ said in a message on September 22.
As much as $100 million was put up for the auction. SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………Full Article: Source

Oil Fund and Central Bank of Azerbaijan created currency oversupply

Posted on 23 September 2016 by VRS  |  Email |Print

The State Oil Fund (SOFAZ) and the Central Bank have created the currency oversupply during its centralized sale of foreign currency to banks. SOFAZ reports that today the Central Bank (CBA) has held the next foreign exchange auction.
“At the auction SOFAZ, putting an application for $100 million, sold $61.4 million to 19 banks,” SOFAZ said. In its turn, the CBA announced the putting the application for $50 million. As a result, total application from these two organizations made up $150 million, exceeding the demand at the auction by 2.44-fold………………………………………Full Article: Source

Oil Fund sells less than half of its application through Central Bank’s auction

Posted on 21 September 2016 by VRS  |  Email |Print

The State Oil Fund (SOFAZ) and the Central Bank continue centralized sale of foreign currency to banks. SOFAZ reports that today the Central Bank (CBA) has held the next foreign exchange auction.
“At the auction SOFAZ, putting an application for $100 million, sold $72.4 million to 20 banks,” SOFAZ said. In its turn, the CBA announced the putting the application for $50 million. As a result, total application from these two organizations made up $150 million, but foreign currency was bought only by 48.3% of application………………………………………Full Article: Source

Nigeria Wasted $62bn Foreign Reserves

Posted on 20 September 2016 by VRS  |  Email |Print

The governor of Central Bank of Nigeria, Godwin Emefiele, on Sunday explained how Nigerian frittered the foreign exchange it earned from sale of crude oil away on frivolities at a time the commodity was selling above $100 per barrel.
Speaking to journalists in Lagos, on steps being taken by the Federal Government and the apex bank to bring the country out of economic recession, Emefiele attributed the current challenges facing the Nigerian economy to its inability to save or invest the billions of dollars it earned from export of crude oil over the years in infrastructure like other countries have done……………………………………….Full Article: Source

Kuwait’s budget forecast to swing back to surplus by 2019

Posted on 16 September 2016 by VRS  |  Email |Print

Kuwait will post only temporary fiscal deficits, and the budget balance will turn back to surpluses by 2019, on the back of recovering oil prices, according to a new report by BMI Research, a Fitch company. Kuwait will implement only limited reforms because its parliament will block many of the government’s targeted cuts while very large foreign reserves will limit the risk of a full-blown fiscal crisis.
Foreign assets held by the sovereign wealth fund stood at $592 billion at the end of 2015, according to the Sovereign Wealth Fund Institute, more than enough to cover the forecasted temporary budget deficits, it added………………………………………..Full Article: Source

Azeri state fund Sofaz sells $78 mln on market

Posted on 15 September 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund Sofaz has sold $78 million on foreign exchange market on Wednesday, fully meeting demand, the fund said.
It had offered $150 million at the Wednesday auction. Sofaz sold $200 million at the previous auction last Thursday when demand reached $402.56 million. On Friday, Azeri central bank raised its main interest rate to 15 percent from 9.5 percent………………………………………..Full Article: Source

Oil Fund sells only half of its application through Central Bank’s auction

Posted on 15 September 2016 by VRS  |  Email |Print

The State Oil Fund (SOFAZ) and the Central Bank continue centralized sale of foreign currency to banks. SOFAZ reports that today the Central Bank (CBA) has held the next foreign exchange auction.
“At the auction SOFAZ, putting an application for $150 million, sold $78 million to 22 banks,” SOFAZ said. At the previous auction it was sold $200 million to 22 banks. The Fund will continue participation in currency auctions………………………………………..Full Article: Source

Azeri State Oil Fund sells $200M to local banks

Posted on 09 September 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $200 million to 22 banks through an auction held by the Central Bank of Azerbaijan (CBA) Sept. 8, SOFAZ said in a message Sept. 8.
SOFAZ will continue to sell foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Azerbaijan Lifts Dollar Sales Sixfold to Feed Soaring Demand

Posted on 09 September 2016 by VRS  |  Email |Print

Azerbaijan sold six times the amount of dollars on Thursday that’s usually offered by its sovereign wealth fund, intensifying efforts to meet rising demand for the U.S. currency after most banks halted their foreign exchange.
The central bank, together with the fund known as Sofaz, sold a combined $300 million, which still wasn’t enough to meet demand by lenders that totaled $402.6 million, according to a statement. Sofaz normally provides $50 million twice a week. Lenders bid for $588 million at the previous auction held two days ago, according to the central bank, which until Thursday hasn’t sold foreign currency since July………………………………………..Full Article: Source

Norway’s central bank to publish minutes of board meetings

Posted on 07 September 2016 by VRS  |  Email |Print

Norway’s central bank will start publishing the minutes of its board meetings and aims to become more transparent even though discussions on monetary policy will remain exempt, the bank said on Tuesday.
“The publication of the minutes of the meetings of the Executive Board will enhance transparency about the management of the central bank, and the management of the Government Pension Fund Global,” it said in a statement, referring to the formal name of the country’s sovereign wealth fund. The fund is the world’s largest sovereign wealth fund with assets of $895 billion, and is managed by a unit of the central bank that invests all the cash in foreign stocks, bonds and real estate………………………………………..Full Article: Source

Moody’s Sees Capital Controls Back on Azeri Agenda as Woes Mount

Posted on 06 September 2016 by VRS  |  Email |Print

The sovereign wealth fund known as Sofaz offers only $50 million in auctions held twice a week, which hasn’t been enough to supply banks. The government’s options are to continue to draw down dollars from Sofaz and the central bank or to allow the manat to weaken, according to Samir Aliyev, an analyst at the Center for Support to Economic Initiatives, a Baku-based research group.
“If the panic on the market remains after the referendum, I think the government will go for the second option,”he said………………………………………..Full Article: Source

SOFAZ sells another $50 million through Central Bank’s auction

Posted on 02 September 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $50 million to 28 banks through an auction held by the Central Bank of Azerbaijan (CBA) Sept. 1, SOFAZ said in a message Sept. 1.
SOFAZ will continue to sell foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Norway Raids Sovereign Wealth Fund To Cover Government Expenses

Posted on 01 September 2016 by VRS  |  Email |Print

Saudi Arabia isn’t the only oil-dependent nation struggling to make ends meet in the wake of weak oil prices. For the first time since its establishment in 1996, the Norwegian government is starting to withdraw money from its sovereign wealth fund to cover government expenses.
In fact, in the first half of 2016 the government has withdrawn $5.4 billion. Moreover, withdrawals are expected to accelerate in 2H 2016 reaching nearly $20 billion, a run-rate that would have them exceeding the fiscal limits imposed on fund withdrawals of 4% of assets, or $36 billion. To put those withdrawals into perspective, Norway’s economy is roughly $375 billion and federal spending accounts for roughly 60% or $225BN………………………………………..Full Article: Source

Norway Readies for Election Budget Battle as Oil Cash Tempts

Posted on 31 August 2016 by VRS  |  Email |Print

As an election nears in Norway, let the oil money fight begin. The government of western Europe’s biggest oil producer is on Tuesday starting its final round of talks to set next year’s budget, which will be presented on Oct. 6.
Prime Minister Erna Solberg will need to navigate conflicting demands of keeping up support for an economy that has been hammered by the plunge in crude and calls for trimming the record use of the nation’s oil wealth that’s threatening to erode its sovereign wealth fund………………………………………Full Article: Source

Azerbaijan’s State Oil Fund sells over $340M to banks

Posted on 26 August 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $50 million to 28 banks through an auction held by the Central Bank of Azerbaijan (CBA) Aug. 25, SOFAZ said in a message. The SOFAZ sold $344.5 million to banks during August 2016.
SOFAZ will continue to sell foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Oil Fund sells another $50 million through Central Bank’s auction

Posted on 26 August 2016 by VRS  |  Email |Print

The State Oil Fund (SOFAZ) and the Central Bank continue centralized sale of foreign currency to banks. SOFAZ reports that today the Central Bank (CBA) has held the next foreign exchange auction.
“At the auction SOFAZ, putting an application for $50 million, sold $50 million to 28 banks,” SOFAZ said. At the previous auction it was sold $46 million to 25 banks. The Fund will continue participation in currency auctions………………………………………..Full Article: Source

Azer Fund sells nearly $50mln to banks

Posted on 24 August 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $46 million to 25 banks through an auction held by the Central Bank of Azerbaijan (CBA) Aug. 23, SOFAZ said in a message.
SOFAZ will continue to sell foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Don’t Try to Buy Dollars in Azerbaijan’s Capital

Posted on 22 August 2016 by VRS  |  Email |Print

Dollar sales in the Azeri capital have all but seized up as demand from households still reeling after two devaluations last year leaves most banks running on empty, with the manat plunging the most globally against the U.S. currency on Friday. The sovereign wealth fund known as Sofaz offers only $50 million in auctions held twice a week, which hasn’t been enough to supply banks.
Demand for dollars was 12 times the amount offered at an auction on Thursday, according to Marja, a financial news portal in Baku. The central bank also raised its key interest rate three times this year to the highest since 2008 as part of an effort to “strengthen trust” in the manat and encourage savings in the currency………………………………………..Full Article: Source

Volume of Azerbaijan’s strategic currency reserves revealed

Posted on 15 August 2016 by VRS  |  Email |Print

The strategic currency reserves of Azerbaijan have exceeded the external debt of the country by 4.4 times and amounted to more than $38.3 billion in the first half of 2016, the Central Bank of Azerbaijan (CBA) reported.
Assets of the State Oil Fund (SOFAZ) totaled $35.1 billion as of July, 1 facing an increase of 4.6 percent as compared to the rate of $33.57 billion in early 2016. Strategic reserves falling to a share of the CBA hit roughly $ 4,284 billion facing a decrease of 17.02 percent within the first half of 2016………………………………………..Full Article: Source

Declining oil revenue could prompt Norway to tap into its $876 billion SWF

Posted on 05 August 2016 by VRS  |  Email |Print

Norway’s state-owned oil and gas fields contributed 29% less to the government’s oil revenue in the first half from a year earlier, reflecting depressed prices, state-owned oil company Petoro AS said Thursday. Declining oil revenues mean Norway may have to tap into its $876 billion sovereign-wealth fund this year to cover its expenses.
The Norwegian government owns stakes in a large number of oil and gas assets on Norway’s continental shelf, in partnerships with companies such as Statoil ASA and Lundin Petroleum. The state ownership is managed by Petoro, which transfers most of its revenue to the government………………………………………..Full Article: Source

Azerbaijani banks buy over $49M from State Oil Fund

Posted on 03 August 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $49.1 million to 29 banks through an auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said Aug. 2. SOFAZ offered $50 million at the auction, but the banks’ demand was $49.1 million.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million………………………………………..Full Article: Source

Bank short of money to buy SOFAZ-offered entire currency

Posted on 03 August 2016 by VRS  |  Email |Print

The State Oil Fund (SOFAZ) and the Central Bank obtained shortage of banks’ money for purchase of currency offered by the Sate Oil Fund. SOFAZ reports that today the Central Bank (CBA) has held the next foreign exchange auction.
“At the auction SOFAZ suggested $50 million, but the overall demand from the 29 banks was sufficient only for purchase of $49.1 million,” SOFAZ said. At the previous auction it was sold $50 million to 28 banks………………………………………..Full Article: Source

SAMA’s net foreign assets reach $562 billion in June

Posted on 01 August 2016 by VRS  |  Email |Print

Net foreign assets at Saudi Arabian Monetary Agency (SAMA) fell by $11 billion from the previous month to $562 billion in June as the government drew down its reserves to cover a budget deficit caused by low oil prices, official data showed on Thursday.
Assets shrank 15.9 percent from a year earlier to their lowest level since early 2012. They reached a record high of $737 billion in August 2014 before starting to drop………………………………………..Full Article: Source

Azeri banks buy $50M from State Oil Fund at auction

Posted on 27 July 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $50 million to 27 banks through an auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said July 26.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016. SOFAZ was established in 1999 with assets of $271 million. As of July 1, 2016, SOFAZ’s assets increased by 4.6 percent and amounted to $35.1 billion as compared to $33.57 billion in early 2016………………………………………..Full Article: Source

Azeri banks buy $50M from State Oil Fund at auction

Posted on 20 July 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) sold $50 million to 29 banks through an auction held by the Central Bank of Azerbaijan (CBA), SOFAZ said July 19. As of July 1, 2016, SOFAZ’s assets increased by 4.6 percent and amounted to $35.1 billion as compared to $33.57 billion in early 2016.
SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016………………………………………..Full Article: Source

Azerbaijan’s Central Bank, State Oil Fund sell $100M to local banks at auction

Posted on 15 July 2016 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund (SOFAZ) and Central Bank (CBA) each sold $50 million to 24 banks through an auction, SOFAZ said July 14. SOFAZ will continue selling foreign currency through auctions in 2016. The foreign currency is sold as part of SOFAZ’s transfers to the Azerbaijani state budget, which are envisaged to stand at 7.615 billion Azerbaijani manats in 2016.
SOFAZ was established in 1999 with assets of $271 million. As of April 1, 2016, SOFAZ’s assets increased by 2 percent and amounted to $34.25 billion as compared to $33.57 billion in early 2016………………………………………..Full Article: Source

Excessive demand for currency has arisen in Azerbaijan: Oil Fund failed to cover it

Posted on 13 July 2016 by VRS  |  Email |Print

The excessive demand for currency has arisen in Azerbaijan, and the State Oil Fund (SOFAZ) was not able to cover it itself. The Central Bank of Azerbaijan informs that today it has conducted a regular foreign exchange auction.
“Along with SOFAZ, the Central Bank sold $200 million at the auction to 29 banks. The demand from banks was fully satisfied,” the CBA said. In turn, SOFAZ informed that it sold only $100 million through auction to the same 29 banks………………………………………..Full Article: Source

Azeri Central Bank Resumes Currency Sales to Meet Dollar Demand

Posted on 13 July 2016 by VRS  |  Email |Print

The Azeri central bank resumed foreign-currency sales for the first time in more than four months to ease pressure on the national currency amid rising demand for dollars.
The regulator offered $100 million in an auction Tuesday, meeting half the demand by 29 lenders, the central bank said in an e-mailed statement. Another $100 million was provided by the sovereign wealth fund known as Sofaz………………………………………..Full Article: Source

Chile should consider tapping sovereign funds in 2017 -finance minister

Posted on 12 July 2016 by VRS  |  Email |Print

Chile’s 2017 budget talks should consider whether the country will tap into its sovereign wealth funds, finance minister Rodrigo Valdes told lawmakers on Monday.
Valdes said use of the funds may be needed at a time when the fiscal deficit is rising, as income from mining investment shrinks. It is expected to rise to 3.2 percent of estimated gross domestic product this year from 2.2 percent last year, he said. He is awaiting a report from an advisory committee before further advancing in the discussion of whether to tap the funds, he added………………………………………..Full Article: Source

Russia Said to Shield Reserves as Putin Taps Sovereign Fund

Posted on 30 June 2016 by VRS  |  Email |Print

Russia will only take its battle against inflation so far. Reserves and the ruble’s free float is where it draws the line. Authorities are looking at how to keep tapping a wealth fund to cover the budget deficit even though their method of doing so floods the economy with excess cash, according to four officials familiar with the discussions.
For now, the central bank wants to stick to printing rubles when the government withdraws foreign currency, instead of converting it through sales on the open market, the people said, asking not to be named because the deliberations are private………………………………………..Full Article: Source

UAE’s net investment outstrips external debt: Moody’s

Posted on 27 June 2016 by VRS  |  Email |Print

The UAE benefits from a large positive net international investment position (IIP) that is far higher than its aggregate external debt, Moody’s Investors Service said. “Although not officially published, historical financial flows, sovereign wealth fund [SWF] assets and external debt data suggest that UAE’s net IIP may be as high as 130 per cent of the country’s gross domestic product [GDP], ranking the country in the top quartile globally,” said Moody’s.
Assets of the country’s largest SWF, the Abu Dhabi Investment Authority, or Adia, which are estimated at approximately 160 per cent of GDP and invested primarily overseas, represent the main component of the country’s net IIP, far exceeding the stock of external debt, which is expected to exceed 70 per cent in 2016………………………………………..Full Article: Source

SOFAZ announces gold reserves portfolio

Posted on 21 June 2016 by VRS  |  Email |Print

Currently, Azerbaijan’s state oil fund SOFAZ has no plans to convert purchased gold to other assets, as well as purchase additional gold, the Fund said. As for gold investments strategy, SOFAZ said these investments have been chosen for strategic purposes, but not short-term speculative targets.
“As it is known, according to SOFAZ investment policy, up to 5% of investment portfolio may be invested in gold. Currently, gold reserves make 30,175 kilograms (970,146 troy ounces). Generally, investing in gold attaches importance in terms of diversification of investment portfolio as an insurance against factors such as economic collapse, exchange rate risks and inflation”, SOFAZ said………………………………………..Full Article: Source

Russia may tap National Wealth Fund to cover budget deficit in 2017

Posted on 17 June 2016 by VRS  |  Email |Print

Russia may start spending cash from one of its sovereign wealth funds, the National Wealth Fund (NWF), to cover budget shortfalls next year, Finance Minister Anton Siluanov said on Thursday.
“If necessary next year part of the funds of the NWF may be used,” he said at the annual St Petersburg International Economic Forum. Russia has so far been mostly using a separate sovereign fund, the Reserve Fund, to cover its budget deficit, but that fund has been dwindling fast………………………………………..Full Article: Source

Azerbaijan’s Oil Fund sold $50 million more through Central Bank’s auction

Posted on 17 June 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has appeared today at the foreign exchange auction of the Central Bank as a seller. According to SOFAZ, today it has applied for sale of $50 million and sold them.
“24 banks became the buyers,” the Fund said. At the previous auction the Fund sold $50 million to 26 banks, including the Central Bank. The Fund promises to continue selling currency through CBA auctions………………………………………..Full Article: Source

Kuwait’s current account surplus narrows to 13-year low

Posted on 08 June 2016 by VRS  |  Email |Print

Kuwait’s current account surplus narrowed to a 13-year low in 2015, as oil export earnings declined, according to NBK. The surplus in Kuwait’s current account fell from 33% of GDP in 2014 to 5.1% in 2015, due in large portion to a drop in oil export receipts amid a weaker oil price environment.
Meanwhile, the foreign assets of the state as a whole, the bulk of which are held by Kuwait Investment Authority (KIA), are thought to be in excess of KD170bn,” says the bank in its market report today………………………………………..Full Article: Source

Govt withdraws $2.5b from ‘Heritage’ Fund

Posted on 06 June 2016 by VRS  |  Email |Print

On the heels of an announcement that it will meet outstanding back-pay to public servants, Government has quietly withdrawn $2.5 billion (about US$385 million) from the Heritage and Stabilisation Fund (HSF).
It is the first time that there’s been a drawdown on the country’s sovereign wealth fund, which was established in 2007, and is often referred to as its rainy-day savings………………………………………..Full Article: Source

Central Bank buys Oil Fund’s currency by 4 times less than commercial banks

Posted on 01 June 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has appeared today at the foreign exchange auction of the Central Bank as a seller. According to SOFAZ, today it has applied for sale of $50 million and sold the entire currency.
“Three commercial banks ($40 million) and the Central Bank ($10 million) became the buyers,” the Fund said. At the previous auction on 26 May the Fund sold $50 million. Then 11 banks bought $20 million and the CBA - $30 million. The Fund promises to continue selling currency through CBA auctions………………………………………..Full Article: Source

Qatar’s first current account deficit since 1998 ‘poses little risk’

Posted on 30 May 2016 by VRS  |  Email |Print

Qatar’s first current account deficit since 1998 “poses little risks” to the country’s external balance and currency peg to the dollar, said a senior economist, who noted that the country has “enough financial buffers” to meet its immediate needs. Doha has very large foreign reserves available to cover short-term shortages and protect the peg if needed, reinforced by the $256bn held by the country’s sovereign wealth fund at the end of 2015.
On top of it, the country’s sovereign wealth fund held $256bn at the end of 2015, according to the Sovereign Wealth Fund Institute. “Over the past three months, market sentiment towards the country’s external sustainability has improved,” BMI Research said………………………………………..Full Article: Source

Kazakh sovereign wealth fund expects stabilization of tenge rate

Posted on 25 May 2016 by VRS  |  Email |Print

The Department of Research and Knowledge Management of Samruk-Kazyna Sovereign Wealth Fund of Kazakhstan forecasted stabilization of the national currency of the country in 2016, according to the department’s report May 24.
“The average exchange rate of the USD-KZT is projected in the range of 355 for 2016″, said the analytical report of the department. Based on the current momentum observed on the USD-KZT, the tenge is expected to strengthen gradually moving forward, underpinned by several factors………………………………………..Full Article: Source

Kazakh sovereign fund raises forecast for 2016 average tenge rate

Posted on 25 May 2016 by VRS  |  Email |Print

Kazakh sovereign wealth fund Samruk Kazyna has raised its forecast for the average tenge exchange rate this year to 355 per dollar, the fund said in a research note on Tuesday.
In January, Samruk Kazyna forecast the average 2016 exchange rate at 380 per dollar under an optimistic scenario and 400 under the baseline one, but the currency has strengthened over the last four months alongside oil prices………………………………………..Full Article: Source

How the Second-Richest Arab Nation Is Reacting to Oil Shock

Posted on 20 May 2016 by VRS  |  Email |Print

Kuwait has enough financial firepower to respond gradually to the plunge in global crude prices. Its sovereign wealth fund is the world’s fifth-largest with $592 billion in assets under management, according to data compiled by the Sovereign Wealth Fund Institute.
Kuwait’s gross domestic product, adjusted for exchange rates, was more than $70,000 per head in 2015 — making it the world’s sixth-richest nation and second only to Qatar in the Arab world, according to IMF estimates. The oil decline “has clearly shown the structural issues in our economy,” said the minister, who is also the wealth fund’s chairman………………………………………..Full Article: Source

Central Bank again becomes a buyer of Oil Fund’s currency, but not key one

Posted on 18 May 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has appeared today at the foreign exchange auction of the Central Bank as a seller. According to SOFAZ, today it has applied for sale of $50 million and sold $49 million through the auction.
“Eight commercial banks ($34 million) and the Central Bank ($15 million) became the buyers,” the Fund said. At the previous auction on 12 May the Fund sold $44.8 million to the 9 banks, including IBA, through auction. The Fund promises to continue selling currency through CBA auctions………………………………………..Full Article: Source

Who is Dipping Into Their Sovereign Wealth Funds Now Oil is Cheap?

Posted on 17 May 2016 by VRS  |  Email |Print

As many as 44 of the world’s countries have at least one sovereign wealth fund set up for a rainy day, and now it seems that for many of them that day has arrived. Let’s take a look at which of these countries have made use of their piggy banks.
Norway, the owner of the largest of the funds, set up in 1990s to safeguard the country’s oil wealth for future generations, announced in January that it had made its first withdrawal from the country’s sovereign wealth fund while trying to counter the economic slowdown………………………………………..Full Article: Source

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