Sat, Aug 27, 2016
A A A
Welcome mteam
RSS

Sovereign Wealth Funds Briefing - Category | Reserve Currencies more

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

Norway Uses Oil Wealth Fund Again to Stay Afloat

Posted on 13 May 2016 by VRS  |  Email |Print

The Norwegian government will tap into its wealth fund once again to sustain government operations, as the sting of a low-priced oil market burdens the Scandinavian country, according to Reuters. Officials have used the fund once before as a rainy day fund and may continue to do so as the economy lacks the necessary revenue. The economy is expected to expand 1.0% in 2016.
As wealthy as Norway may be, its Achilles heel is a non-diversified economy that relies heavily on oil exports. Norway will have to consider diversifying its economy in major ways to lessen the shock of price fluctuations in the energy markets. Because of revenue shortfalls, the government is forced to spend additional money to plug deficit holes………………………………………..Full Article: Source

Jensen dips into the oil fund again

Posted on 12 May 2016 by VRS  |  Email |Print

Norwegian Finance Minister Siv Jensen announced plans on Wednesday to bolster Norway’s surprisingly resilient economy once again, by tapping another NOK 10.4 billion of the country’s Oil Fund reserves. NOK 900 million will be earmarked to combat unemployment in the southwestern portions of Norway that have been hit hardest by the dive in oil prices.
Jensen had referred to the government’s “expansive budget” earlier in the day, before confirming that even more money from the country’s huge “Oil Fund” will be spent………………………………………..Full Article: Source

Central Bank remains buyer of Oil Fund’s currency, but not key

Posted on 11 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 $47.8 million through the auction.
“12 commercial banks ($27.8 million) and the Central Bank ($20 million) became the buyers,” the Fund said. At the previous auction on 5 May the Fund sold $45.8 million to the eight banks, including IBA, through auction. The Fund promises to continue selling currency through CBA auctions………………………………………..Full Article: Source

Saudi Arabia Can’t Quit Oil

Posted on 27 April 2016 by VRS  |  Email |Print

Saudi Arabia announced the seemingly impossible. The world’s largest oil producer and owner of an oil company reportedly worth more than $2 trillion, is going to kick its fossil fuel habit, Deputy Crown Prince Mohammed bin Salman said.
“We have developed a case of oil addiction in Saudi Arabia,” he told al-Arabiya television news channel, after officially unveiling a plan whose key parts had already been carefully released. Forty percent of the kingdom’s GDP and a whopping 90 percent of the government’s revenue comes from oil………………………………………..Full Article: Source

Meet the Norwegian Currency’s Oil Buffer

Posted on 19 April 2016 by VRS  |  Email |Print

Norway’s sovereign wealth fund has shielded the krone from the steeper falls suffered by the Russian ruble. When oil price gyrations hit currencies, it’s good to have a cushion to soften the blows. Norway has a big cushion, a 7.5 trillion kroner ($906 billion) sovereign fund.
After this Sunday’s summit in Doha failed to secure an agreement among oil-producers to curb crude supply, the oil price fell and the currencies of the big crude exporters fell with it. When crude later rebounded, these currencies followed suit………………………………………..Full Article: Source

Petro-dollar crunch hits GCC sovereign wealth funds

Posted on 05 April 2016 by VRS  |  Email |Print

The Gulf Cooperation Council (GCC) countries are facing a major financial crisis if they fail to make changes to their own structures or economies. A continued period of low prices for oil and natural gas will have a detrimental effect on the overall stability of the regional economies. After years of high oil prices, generating vast amounts of revenues being put into sovereign wealth funds (SWFs), the market is oversupplied.
Still, gross domestic growth overall in the region is positive, and inflation remains under control. Total growth of the GGC’s GDP, according to the IMF, is set to decrease to 2.7% in 2016, in comparison to 3.2% in 2015 and 3.4% in 2014………………………………………..Full Article: Source

Three Surprising Reasons Saudi Arabia May Be Getting Out of the Oil Business (Video)

Posted on 04 April 2016 by VRS  |  Email |Print

Saudi crown prince Muhammad bin Salman announced Friday that Saudi Arabia would use its oil assets to back a $2 trillion sovereign wealth fund. The move suggested to many observers that the kingdom is preparing for a likely end of the petroleum business and transitioning to being primarily an investor.
While it is true that the money for the sovereign wealth fund is expected to come from petroleum sales, it also seems clear that the kingdom recognizes that it has a stranded asset that won’t be nearly as valuable in a decade or two as it is now. It could even end up, like coal, being regulated out of existence in many countries. Here are 3 reasons Saudi Arabia is likely making this massive change in economic strategy:……………………………………….Full Article: Source

Gulf nations left to raid reserves

Posted on 04 April 2016 by VRS  |  Email |Print

Earlier this year, a sleepy, little-watched, financial gauge sprang to life. The moribund forwards market for the Saudi riyal suddenly started pricing in speculation that the world’s largest oil producer could be forced to abandon its 30-year peg to the US dollar.
Kuwait, Qatar and the United Arab Emirates have sufficient sovereign wealth fund assets and central bank reserves to maintain spending at current levels for decades with oil at $50 or even $30, according to Bank of America. However, Oman and Bahrain would run out of money in two or three years, although they could potentially extend this by issuing debt………………………………………..Full Article: Source

Saudi central bank net foreign assets fall $584bn in Feb

Posted on 30 March 2016 by VRS  |  Email |Print

Net foreign assets at Saudi Arabia’s central bank dropped 1.7 percent from the previous month to 2.19 trillion riyals ($584 billion) in February, central bank data showed on Tuesday.
Assets fell 17.3 percent from a year earlier to their lowest level since May 2012. They reached a record high of $737 billion in August 2014 before starting to shrink. The central bank, which serves as Saudi Arabia’s sovereign wealth fund, has been drawing down its assets to cover a huge state budget deficit caused by low oil prices………………………………………..Full Article: Source

Local banks buy $0.5M from SOFAZ

Posted on 29 March 2016 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ sold $0.5 million to three local banks through the auction held by Azerbaijan’s Central Bank (CBA) March 28, SOFAZ reported on March 28. SOFAZ offered $100 million for sale through the auction, and 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

Fiscal surplus of $3.45b, thanks to Temasek’s inclusion in NIR

Posted on 29 March 2016 by VRS  |  Email |Print

From a $4.88 billion deficit last year to back in the black this year. An overall surplus of $3.45 billion is projected for 2016, buoyed by bigger contributions from Singapore investment company Temasek Holdings.
What is more, the surplus is forecast even as spending rises, including a marked increase in healthcare and business support. Helping offset the rising expenditure is Temasek’s inclusion in the net investment returns (NIR) framework this year. This will push the NIR contribution to the nation’s coffers to $14.7 billion, up 48.6 per cent from $9.9 billion last year………………………………………..Full Article: Source

Lower oil tests sovereign wealth funds

Posted on 23 March 2016 by VRS  |  Email |Print

Bader Al Sa’ad, the head of the Kuwait Investment Authority, isn’t spending much time these days assessing new investments. Instead he is advising his government as it moves to establish a debt management office. Circumstances have changed in the Gulf, bringing in their wake a host of ripple effects. A while ago, the biggest headache for the sovereign wealth funds of the Middle East was finding safe but profitable homes for their portion of swelling oil revenues.
Now, many are fortunate if they do not have to liquidate holdings at the request of their cash strapped governments. Kuwait is among the best managed of the sovereign wealth funds in the Gulf which means it is under less pressure to sell, rather it is simply putting out less new money………………………………………..Full Article: Source

Azerbaijan’s Oil Fund sold $34.3 million through Central Bank’s foreign exchange auction

Posted on 21 March 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has take part in today’s foreign exchange auction of the Central Bank as a seller. According to SOFAZ, today it applied for sale of $100 million and sold $34.3 million through the CBA auction.
“Two banks were among the buyers,” SOFAZ said. At the previous auction on 16 March the Fund sold $39.1 million to eight banks through auction. SOFAZ promises to continue currency sales through CBA auctions………………………………………..Full Article: Source

Not All Carnival In Trinidad & Tobago

Posted on 21 March 2016 by VRS  |  Email |Print

Should Prime Minister Andrew Holness desire vindication for his promise to honour Jamaica’s agreement with the International Monetary Fund (IMF), including the programme of fiscal consolidation, he might look to Trinidad and Tobago (T&T), the English-speaking Caribbean’s economic powerhouse, where the Fund has just completed its annual Article IV consultation on the country’s economy.
The positive news of the Port-of-Spain government is that the country has foreign reserves of around US$9.6 billion. There is another US$5.6 billion in sovereign wealth fund - the Heritage and Stabilisation Fund - the kind of investment that Jamaica was expected to make when it imposed its bauxite levy but was mostly consumed in general spending………………………………………..Full Article: Source

Azeri fund sells $39.1 mln on forex market

Posted on 17 March 2016 by VRS  |  Email |Print

Azerbaijan’s SOFAZ fund sold $39.1 million on the foreign exchange market on Wednesday out of $100 million it offered, its press service said.
Azeri authorities have been selling foreign currency to support the country’s manat currency………………………………………..Full Article: Source

Azeri central bank says frenzy on FX market averted, market adapts to manat float

Posted on 16 March 2016 by VRS  |  Email |Print

Azerbaijan’s central bank said on Tuesday its policies had successfully calmed the Azeri foreign exchange market and that investors and businesses are gradually adapting to the manat’s floating exchange rate regime. The manat was freed to float in mid-December, triggering a plunge of 35 percent against the dollar, after the central bank burned through more than half its foreign reserves to defend the currency as prices for the country’s main export oil plunged.
“Research carried out this year has shown that a frenzy on the foreign exchange market in Azerbaijan has been averted and economic players are adapting step-by-step to the new regime,” the central bank told Reuters in a written answer to questions………………………………………..Full Article: Source

Azerbaijan’s Oil Fund sold $11.9 million through Central Bank’s foreign exchange auction

Posted on 15 March 2016 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan (SOFAZ) has appeared today on the foreign exchange auction of the Central Bank as a seller. According to SOFAZ, today it has applied for sale of $150 million and sold $11.9 million through the auction.
“Nine banks were among the buyers,” SOFAZ said. At the previous auction on 11 March the Fund sold $68.4 million to 25 banks through auction. SOFAZ promises to continue selling currency through the CBA auctions………………………………………..Full Article: Source

Putin’s $50 Billion Oil Cache Gives Russia Luxury to Ignore ECB

Posted on 15 March 2016 by VRS  |  Email |Print

Russian central bankers have fewer reasons to offer relief to their recession-wracked economy than you might think. Their decision whether to resume an interest rate-cutting cycle this week is almost beside the point as the government of Vladimir Putin lubricates the economy in the background with oil wealth amassed in better times.
The Finance Ministry transferred 2.6 trillion rubles ($37 billion) of accumulated oil riches from the $50 billion rainy-day sovereign wealth fund into the economy last year to cover a fiscal gap. It’s budgeting another 2 trillion-ruble drawdown from the Reserve Fund in 2016………………………………………..Full Article: Source

Angola Cuts 2016 Spending by 20%

Posted on 15 March 2016 by VRS  |  Email |Print

Angola, facing economic and political pressures, has cut spending under its 2016 budget by 20% and is reassuring international investors it can cope with persistently low oil prices, Finance Minister Armando Manuel said Monday.
Manuel declined to comment on speculation that Mr. dos Santos could push for his son, José Filomeno de Sousa dos Santos, the head of Angola’s sovereign-wealth fund, or his daughter, business magnate Isabel dos Santos, to take over………………………………………..Full Article: Source

China’s sovereign wealth fund not included in FX reserves - regulator

Posted on 10 March 2016 by VRS  |  Email |Print

Assets of China’s sovereign wealth fund are not included in the country’s foreign exchange reserves and do not impact China’s reserves, China’s FX regulator said on Wednesday.
China has ample FX reserves, the State Administration of Foreign Exchange said on its official microblog………………………………………..Full Article: Source

PBOC intervening to prop up forex reserves: Daiwa

Posted on 10 March 2016 by VRS  |  Email |Print

China’s central bank is probably using stealth measures to intervene in the foreign-exchange market and shore up its currency reserves, according to Daiwa Capital Markets Inc. The People’s Bank of China (PBOC) might have bought foreign currency from local banks, used the forwards market to prop up the yuan and asked the nation’s sovereign wealth fund to liquidate overseas assets, Daiwa analysts Kevin Lai and Junjie Tang wrote in a note on Tuesday.
China’s State Administration of Foreign Exchange (SAFE) yesterday said on its microblog that assets of the nation’s sovereign wealth fund, China Investment Corp, are not included in the country’s foreign-exchange reserves. SAFE, which did not name Daiwa, said its reserves are ample………………………………………..Full Article: Source

banner
banner
August 2016
M T W T F S S
« Jul    
1234567
891011121314
15161718192021
22232425262728
293031