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PNG Gas revenue flows

Posted on 28 August 2014 by VRS  |  Email |Print

A total of 12 shipments of LNG gas have already left PNG shores, raking in almost US$600 million (K1.5 billion) in revenue for all the partners, including the government. Prime Minister Peter O’Neill told Parliament Wednesday,that the country has started the early export of LNG gas and to date 12 shipments have taken place with an estimated US$50 million per shipment.
He said the government is expected to receive an estimated US$30 billion revenue over the next 20 years, which is substantial revenue. He said the project is managed by ExxonMobil and all revenue from the gas export are parked in a trust account that is managed by ExxonMobil and not the PNG government………………………………………..Full Article: Source

Norway’s soaring oil fund gives government more spending power for 2015

Posted on 27 August 2014 by VRS  |  Email |Print

Norway’s sovereign wealth fund is growing far faster than expected, potentially leaving the government with more money to spend in next year’s budget, financial daily Dagens Naeringsliv reported on Tuesday.
The fund’s value could hit almost 6 trillion Norwegian crowns ($973 billion) by the end of the year, according to a new government forecast cited by the paper. That compares with a year-end estimate of 5.48 trillion crowns made in May. The newspaper gave no explanation for the discrepancy, but the fund invests heavily in foreign stock markets, many of which have been trading around multi-year highs………………………………………..Full Article: Source

Kuwait’s oil revenues masks inherent weakness

Posted on 25 August 2014 by VRS  |  Email |Print

The credit rating agency Standard and Poor’s has made the right move in retaining Kuwait’s ratings, namely AA for the long-term and A-1 for short-term with a stable outlook. The assumptions were made on some significant data available with S&P.
The S&P report suggests that Kuwait enjoys a sizable net asset position, compromising 2.7 times the GDP. Undoubtedly, this is something extraordinary in today’s world where maintaining such positions are an exception. This fact is supported by the latest Sovereign Wealth Institute data, placing Kuwait’s sovereign wealth fund at $410 billion. Certainly, this fund is a major contributor to investment income, which amounted to about $16 billion in 2013………………………………………..Full Article: Source

Nigeria: National revenue drops by N154.56b, says FAAC

Posted on 20 August 2014 by VRS  |  Email |Print

The fortunes of the three tiers of government suffered a huge decline last month as the Federal Government said the country recorded a N154.56 billion decline in gross federally collected revenue from N784.88 billion received in June to N630.32 billion in July, this year.
The Minister of State for Finance, Ambassador Bashir Yuguda said Federation Accounts Allocation Committee (FAAC) transferred N6.2 billion to the Excess Crude Account thus bringing the balance in the account to $4 billion while the sum of N35 billion was transferred to the domestic excess crude account for payment to oil marketers as subsidy………………………………………..Full Article: Source

Norway c.bank will not make any FX transactions in Aug

Posted on 01 August 2014 by VRS  |  Email |Print

Norway’s central bank will not sell any Norwegian crowns in August to buy foreign exchange for the country’s sovereign wealth fund, the bank said on Thursday, in line with its practice in recent months.
The bank earlier said it did not expect to buy any foreign currency over the coming months and it could even buy crowns later in the year. The fund uses the proceeds of a sale to invest in stocks, bonds and property abroad. It is the world’s largest sovereign wealth fund………………………………………..Full Article: Source

Azerbaijan’s oil funds turning into Chinese Yuan

Posted on 01 August 2014 by VRS  |  Email |Print

Azerbaijan’s state oil fund SOFAZ which is in charge of accumulating and managing the country’s oil and gas revenues have taken some measures to include Yuan in its currency portfolio. SOFAZ Deputy Executive Director Israfil Mammadov said the fund has appealed to the People’s Bank of China to obtain quotes on indirect investment in the Chinese yuan onshore market with a view to diversify its investment portfolio.
The fund, established in 1999 aimed at transforming rising hydrocarbon reserves into financial assets, started investing in new asset classes such as equities, real estate, and gold, as well as diversifying its currency portfolio toward the Turkish lira, Russian ruble, and Australian dollar, from 2012………………………………………..Full Article: Source

The State Oil Fund of Azerbaijan starts investing in renminbi

Posted on 31 July 2014 by VRS  |  Email |Print

The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has applied to the People’s Bank of China (PBoC) for indirect renminbi investment in China’s onshore market to diversify its current investment portfolio. According to Israfil Mammadov, deputy CEO of SOFAZ, the Fund applied for the PBoC quota not long ago.
“We intend to invest in a gradual manner, initially through Chinese government debt securities. As our experience grows, we will consider other investment tools available in the Chinese financial markets,” said Mammadov. Mammadov said the decision was made as a result of a careful evaluation of the SOFAZ portfolio and with the aim of using various opportunities in Chinese markets………………………………………..Full Article: Source

Managing foreign exchange reserve risks; Taiwan to consider SWF?

Posted on 21 July 2014 by VRS  |  Email |Print

Foreign exchange reserves hit a record high of US$423.45 billion in Taiwan in June and also set a new high of US$7.47 trillion in Asia. Seventy percent of the increase in foreign exchange reserves in 2013 were seen in Asia. The government, therefore, has to seriously consider measures to manage Taiwan’s huge foreign exchange reserves. We have previously suggested setting aside a part of the country’s foreign exchange reserves to establish a sovereign wealth fund.
Currently there are more than 30 countries, including Singapore, Kuwait, Brunei, Norway and the United Arab Emirates, that have set up such funds with total combined assets of US$6.321 trillion. Although Taiwan has not set up such a fund, it has one in practice. The central bank has made good use of its foreign exchange reserves in recent years, contributing about NT$200 billion a year to national coffers, helping cover fiscal deficits………………………………………..Full Article: Source

Sovereign fund could be answer for Taiwan

Posted on 21 July 2014 by VRS  |  Email |Print

Not so long ago, a third-party investment manager handling government funds caused heavy losses for Taiwan’s Labor Pension and Labor Insurance funds. Now another market trader is suspected of speculating on shares with board members of an over-the-counter listed company, causing the pension fund to lose more than NT$60 million (US$2 million).
Minister of Finance Chang Sheng-ford has suggested setting up a “Taiwan sovereign fund,” but nothing more has been done about it. If fund managers are inexpert and third-party traders keep mishandling the funds, establishing a sovereign fund could be a solution, since it could kill two birds with one stone by averting rogue trading and improving investment performance………………………………………..Full Article: Source

Temasek Holdings: Bitcoin is under testing

Posted on 01 July 2014 by VRS  |  Email |Print

Temasek Holdings, a triple-A rated investment company owned by the government of Singapore, has been testing Bitcoin, according to a report in the Singaporean newspaper, Today Online, cited by coindesk.com.
The announcement has been made by the chairman of the company, Lim Boon Heng, in a speech cited by the same source. The experiment has involved everyone getting their own Bitcoin wallet and practicing by using it to donate to charity, Lim adds………………………………………..Full Article: Source

What should China buy with its $3.9 trillion reserves?

Posted on 18 June 2014 by VRS  |  Email |Print

China’s foreign exchange reserves rose to $3.948 trillion at the end of the first quarter. The figure in 1978 was $167 million, and in November 1996 it surpassed $100 billion for the first time. The change has been amazing.
There have been many thoughts about how we in China can make use of the forex reserve, ranging from buying assets abroad to using it as leverage in diplomatic talks. What needs emphasizing is that the reserve is not a free buffet. It corresponds to the central bank’s debt in yuan and costs dearly to maintain………………………………………..Full Article: Source

Azerbaijan’s sovereign wealth fund to invest $1.8 billion in renminbi

Posted on 16 June 2014 by VRS  |  Email |Print

Azerbaijan’s sovereign wealth fund will invest up to $1.8 billion in China’s renminbi this year, one of the biggest publicly-acknowledged investments in China’s currency. Shahmar Movsumov, the chief executive of the $37 billion State Oil Fund of Azerbaijan, said that the fund is applying for permission from Chinese regulators to access local currency assets and wants to start investing in them by the end of this year.
“It’s one of the currencies that are becoming important, so why not invest in renminbi?” Movsumov said, according to the Financial Times. “We are in the process of getting all the necessary preparations.”……………………………………….Full Article: Source

Norway to refrain from fx buying for wealth fund in June

Posted on 02 June 2014 by VRS  |  Email |Print

Norway’s central bank will not sell Norwegian crowns in June to buy foreign exchange for the country’s sovereign wealth fund, the bank said on Friday on its page, in line with its practice in recent months.
The bank earlier said it did not expect to buy any foreign currency over the coming months and that it could even buy crowns later in the year. The fund uses the proceeds of a sale to invest in stocks, bonds and property abroad. It is the world’s largest sovereign wealth fund………………………………….Full Article: Source

Azerbaijani State Oil Fund diversifies currency portfolio

Posted on 23 May 2014 by VRS  |  Email |Print

As of the first quarter of 2014, some 51.2 percent of the total volume of the investment portfolio of the Azerbaijani State Oil Fund (SOFAZ) is in U.S. dollars ($18.6 billion), SOFAZ said on May 20. As of January-March, the total sum of SOFAZ’s investment portfolio amounted to $36.344 billion or 99.3 percent of total volume of assets, according to the report.
Around 36.9 percent of the investment portfolio is concentrated in euros (9.75 billion euros), 5 percent in British pounds sterling (about 1.08 billion pounds sterling), 1.2 percent in Turkish Lira, 0.5 percent in Australian Dollars and 1.2 percent in Russian rubles, 0.6 percent in Korean won. The rest of the portfolio at 3.5 percent ($1.26 million) is concentrated in gold………………………………………Full Article: Source

China’s forex reserve to hit $4 trillion

Posted on 19 May 2014 by VRS  |  Email |Print

China, the world’s second-largest economy, will have more than $4 trillion in foreign exchange reserve by the end of 2014, said a People’s Daily report on Monday. China used to be short of foreign exchange before the nation adopted the reform and opening-up policy in 1978, while the country’s foreign exchange reserve exceeded the $10 billion, $100 billion and $1 trillion marks in 1990, 1996 and 2006, respectively.
According to the latest statistics from the People’s Bank of China, the central bank, as of the first quarter of this year, the foreign exchange reserve balance of China reached $3.95 billion, ranking first globally and accounting for one third of the world’s total…………………………………..Full Article: Source

Norway to slightly increase govt spend in revised budget -NTB

Posted on 15 May 2014 by VRS  |  Email |Print

Norway’s revised 2014 budget, to be unveiled later on Wednesday, will increase spending by 1.9 billion crowns ($320 million) compared to a November proposal, news agency NTB reported, citing government documents.
The structural budget deficit is now seen at 2.8 percent of the $860 billion sovereign wealth fund, known as the oil fund, below a November forecast of 2.9 percent, NTB added. The government can spend up to 4 percent of the oil fund each year and even though spending has been rising in nominal terms, it has been on a decline as a percentage of the fund because of its rapid growth………………………………………..Full Article: Source

Norwegian Finance Minister Vows Reforms

Posted on 15 May 2014 by VRS  |  Email |Print

Norwegian Finance Minister Siv Jensen vowed Wednesday to implement structural reforms to counter a drop in oil- sector investment and an expected slowdown in economic growth. “What we see now is a long-term development where oil-sector investments are dropping further ahead,” Ms. Jensen said.
The record 140.9 billion Norwegian kroner ($23.8 billion) spending figure amounts to 2.8% of the value of the country’s sovereign-wealth fund. ……………………………………….Full Article: Source

Nigeria needs to save for effective monetary policy, economic growth – CBN governor

Posted on 14 May 2014 by VRS  |  Email |Print

The Acting Governor of the Central Bank of Nigeria (CBN), Dr Sarah Alade, says it is important for Nigeria to have reserves to ensure effective monetary policy and economic growth. Alade made this known on Tuesday in Abuja, during her presentation before the National Conference Committee on Trade and Investment.
“It should be part of our constitution that a certain percentage of whatever we earn must be saved so that we build up again the excess crude account. China today has more than three trillion dollars reserves and some oil producing countries don’t even put the oil money as part of their budget………………………………………..Full Article: Source

SAFE: Two-way fluctuation conventional

Posted on 25 April 2014 by VRS  |  Email |Print

China’s foreign exchange settlement rose in the first quarter, but at an easing rate. Officials say China’s slower economic growth and the U.S. central bank’s tapering may bring more volatility to cross border capital flows, it will be conventional for the Chinese yuan to float either way.
A solid rise from January to March, yet the tempo is falling month by month. China’s foreign exchange settlement and sale surplus comes in a downward trend, from more than 70 billion US dollars in the beginning, to just over 40 billion US dollars at the quarter end, according to China’s foreign exchange regulator………………………………………..Full Article: Source

Reserve currency: Is the yuan tearing down the US dollar?

Posted on 11 April 2014 by VRS  |  Email |Print

At least 40 central banks have invested in the yuan and several others are preparing to do so, putting the mainland currency on the path to reserve status even before full convertibility, Standard Chartered said.
Twenty-three countries have publicly declared their holdings in yuan, in either the onshore or offshore markets, yet the real number of participating central banks could be far more than that, said Jukka Pihlman, Standard Chartered’s Singapore-based global head of central banks and sovereign wealth funds. Pihlman, who formerly worked at the International Monetary Fund advising central banks on asset-management issues, said at least 12 central banks had invested in yuan assets without declaring they had done so………………………………………..Full Article: Source

Kazakhstan’s international reserves figure announced

Posted on 09 April 2014 by VRS  |  Email |Print

Kazakhstan’s international reserves, including gold and FX reserves of the National Bank and the assets of the National Oil Fund grew from $95.222 billion to $99.304 billion from January to March 2014, according to the country’s National Bank.
The gold and FX reserves of the National Bank for the period grew by 7.45% to reach $26.517 billion, with the assets of the National Oil Fund growing by 3.18% for the period to reach $72.787 billion. February 14 Kazakhstan’s President Nursultan Nazarbayev instructed his Cabinet to allocate $5.4 billion out of the National Oil Fund [accumulating oil windfall revenues] in 2014-2015 as “long money” for the country’s economy………………………………………..Full Article: Source

Oil and gas account for $1.7 bln of state’s general fund

Posted on 04 April 2014 by VRS  |  Email |Print

A detailed tax study in New Mexico shows that the oil and gas industry is responsible for more than $1.7 billion in general-fund revenues in fiscal year 2013.Earlier this year, the New Mexico Tax Research Institute released the Fiscal Impacts of Oil and Natural Gas Production in New Mexico, a 325-page study of the state’s oil and gas industry contributions to the general fund.
The study says that the oil and gas industry contributes about 31.5 percent of the total amount in the general fund. Furthermore, the report breaks down information by county. In fiscal year 2013, the state’s general fund was about $5.6 billion, according to the study………………………………….Full Article: Source

Norway cbank won’t buy foreign currency for oil find in April

Posted on 02 April 2014 by VRS  |  Email |Print

Norway’s central bank will not purchase any foreign currency for the country’s sovereign wealth fund in April, the bank said on Monday on its page, in line with its practice over the past several months.
The fund, the world’s largest sovereign wealth fund, invests Norway’s saved up wealth from oil and gas production for future generations. The central bank, which manages the fund, frequently converts surplus tax revenues into foreign currency to buy stocks, bonds and real estate. However, it has made no currency purchases since the end of October……………………………..Full Article: Source

Kazakhstan Government increases reserve fund by $250 mln after tenge devaluation

Posted on 24 March 2014 by VRS  |  Email |Print

Amid adjustments of microeconomic indicators for the year 2014 the Kazakhstan Government has revised its budget. “We advise to increase the government reserve by $250 million to ensure timely response to emergency situations arising from fluctuations of the economy,” the Minister of Economy and Budget Planning Yerbolat Dosayev suggested at the meeting of the Cabinet.
To compensate the losses connected with the recent devaluation of tenge by nearly 20%, the government increased the projected state expenditures by $221 million. The projects that require immediate financing will be compensated the exchange rate difference. If required, similar measures will be taken into consideration for other projects in the budgeting for 2015-2017………………………………………..Full Article: Source

Azerbaijan’s gold reserves to be delivered to Baku before the end of the year

Posted on 13 March 2014 by VRS  |  Email |Print

The State Oil Fund of Azerbaijan actively purchasing physical gold will deliver its whole gold reserve to Baku before the end of the year. According to Shahmar Movsumov, SOFAZ Executive Director, over recent 2 years the Fund has purchased 30 tons of gold.
“20 tons of purchased gold is already in the country and the rest 10 tons will be delivered to the country before the end of the year. We purchased the last batch of gold at the price of $1,200 for ounce. Now one ounce of gold is already $1,350-1,360 and the price is still growing. However, the price is not so important for us, as our goal is to create gold reserves”, - Movsumov said………………………………………..Full Article: Source

‘We are all millionaires now’: Norway’s astounding fiscal reserve

Posted on 07 March 2014 by VRS  |  Email |Print

The financial position of the Norwegian government is astonishingly strong. While most other national governments in Europe and North America, especially in recent years, have been posting sizable annual budget deficits and accumulating additional debt, Norwegians have seen their government post sizable annual budget surpluses and add to a rapidly growing fiscal reserve - popularly known as the oil fund - that now has a market value (almost $850 billion) more than 1.5 times larger than Norway’s GDP!
“We are all millionaires now,” declared a Norwegian acquaintance, noting that the market value of the oil fund has risen beyond five trillion krone - for the five million Norwegians………………………………………..Full Article: Source

Strategic investment fund to put EUR6.8 bln into economy

Posted on 06 March 2014 by VRS  |  Email |Print

The investment of €6.8 billion in commercial projects that are of benefit to the Irish economy is to be overseen by the National Treasury Management Agency over the coming four to five years.
The investment is to occur in tandem with private sector investment and the experience of the agency to date indicates the total invested as a result of the creation of a new fund will be of the order of €12 billion to €15 billion………………………………………..Full Article: Source

Ruble slides third day as wealth fund top-up plan stokes concern

Posted on 20 February 2014 by VRS  |  Email |Print

The ruble weakened for a third day on bets a Finance Ministry plan to replenish one of Russia’s wealth funds will blunt central bank steps to slow the local currency’s fall.
The ruble lost 0.5 percent to 41.6355 against Bank Rossii’s target basket of dollars and euros by 11:54 a.m. in Moscow. The yield on the government’s bonds due February 2027 rose six basis points, or 0.06 percentage point, to 8.38 percent………………………………………..Full Article: Source

Kazakhstan National Fund allocates $5.4 bln to support economy

Posted on 17 February 2014 by VRS  |  Email |Print

After the devaluation of tenge by 19% earlier this week, the National Fund of Kazakhstan decided to allocate $5.4 billion to support local business, Tengrinews reports. The National Fund that created in 2000 accumulates windfall oil profits that would serve as a cushion for the country’s economy in the case of emergency. The Fund has accumulated about $68.9 billion so far.
“It is exactly the situation when the State uses its reserves to provide emergency relief to the economy. I instruct to allocate $5.4 billion to provide long-term money loans that will ensure the growth of the economy,” Nursultan Nazarybayev said at the enlarged meeting of the Cabinet in Astana………………………………………..Full Article: Source

Sovereign wealth fund key to the fall or rise of the kina

Posted on 14 February 2014 by VRS  |  Email |Print

The ANZ Bank last month predicted the kina will fall by up to 10% in value by the end of 2014, in anticipation of income from the LNG project. Paul Barker looks ahead several years to when that income begins to have ‘a substantial impact’.
While it’s unusual for a bank to be publicly forecasting currency movements, the fall in the value of the kina over the last few months was predictable………………………………………..Full Article: Source

Nigeria faces questions over ‘missing’ oil money

Posted on 10 February 2014 by VRS  |  Email |Print

Africa’s biggest oil producer Nigeria is facing questions about where billions of dollars in oil money is going, amid suspicions of fraud and it being syphoned off to fund election campaigns. The issue has been rumbling on since September, when the governor of the Central Bank of Nigeria accused the Nigerian National Petroleum Corporation of withholding $49.8 billion in oil revenue.
Some of the funds go into a rainy-day fund, called the Excess Crude Account (ECA), to ensure the government budget is financed in case world oil prices fall sharply. According to the latest central bank figures, the ECA held $11.5 billion at the end of 2012, but this had dropped to $2.5 billion in January this year………………………………….Full Article: Source

Norway wealth fund to refrain from fx buying in Feb

Posted on 03 February 2014 by VRS  |  Email |Print

Norway’s central bank will not sell Norwegian crowns in February to buy foreign exchange for the country’s sovereign wealth fund, the bank said on Friday on its page, continuing its January practice.
Last month the central bank said it would refrain from buying foreign exchange so the fund could invest money in foreign stocks and bonds. The fund invests Norway’s revenues from oil and gas production for future generations. It is the world’s largest sovereign wealth fund………………………………………..Full Article: Source

China loses manager of its cash hoard

Posted on 29 January 2014 by VRS  |  Email |Print

The invisible man behind China’s $3.8 trillion foreign-cash hoard is disappearing. Zhu Changhong, a former star bond trader in the U.S. who was recruited by Chinese officials about four years ago from investment firm Pimco to manage the country’s foreign-exchange reserves, resigned unexpectedly, officials said Tuesday. The move comes as China grapples with boosting returns at a time of turbulence in global markets.
China’s State Administration of Foreign Exchange, the division of the central bank that manages the foreign currency the bank buys to control the value of the yuan, said the 44-year-old Mr. Zhu is set to wrap up his mission at the agency at the end of the month………………………………………..Full Article: Source

Venezuela has failed to put aside money from oil revenue surplus

Posted on 27 January 2014 by VRS  |  Email |Print

By mid-1999, under Jorge Giordani’s tenure as planning minister, the Investment Fund for Macroeconomic Stabilization (FIEM) was implemented as a saving scheme. Back then, Giordani said that the Chávez’s government approach was “that of squirrels, who save up their bounty for future use when they can’t find food.”
By December 2001, the FIEM totaled USD 7.1 billion. But in 2003, after a two-month general strike against Venezuelan President Hugo Chávez, the government dipped into the FIEM to cover the budget. More than USD 6 billion were withdrawn, and only USD 700 million remained in the fund………………………………………..Full Article: Source

Nigeria plans to boost capital of sovereign wealth fund

Posted on 22 January 2014 by VRS  |  Email |Print

Nigerian Finance Minister Ngozi Okonjo-Iweala said the federal government wants to increase the capital of its $1 billion sovereign wealth fund this year even as state governors protest allocations before 2015 elections.
“We want to look at what we can do however small to ensure a steady streaming of income into the sovereign wealth fund,” Okonjo-Iweala, 59, said in an interview Sunday in the commercial capital, Lagos, declining to comment on the possible amount. “This is a very political year, so how we do it and what we do, we need to watch and see what the best moment is.”…………………………….Full Article: Source

Alaska needs new revenue

Posted on 21 January 2014 by VRS  |  Email |Print

A newly released analysis says options like large cuts in capital budgets, imposing state sales or income taxes, or cutting Permanent Fund dividends may not eliminate future deficits.
In its overview of Gov. Sean Parnell’s budget plan, the Legislative Finance Division says current spending levels are unsustainable without additional revenue, and simply restraining spending growth is insufficient………………………………………..Full Article: Source

Libyan government denies withdrawing US$7bln foreign reserves

Posted on 09 December 2013 by VRS  |  Email |Print

The Libyan Government has denied reports that it has withdrawn US$7 billion from its foreign currency reserves. It has also denied taking a loan from the World Bank to finance its budget deficit caused by the fall in oil receipts.
A communiqué published by the Finance Ministry on Friday night described the reports as “false” and called upon the media to adopt a professional approach while delivering their job………………………………………..Full Article: Source

Canada monetary reserves rise $541 mln in November from October

Posted on 05 December 2013 by VRS  |  Email |Print

Canada’s official international reserves rose $541 million in November, the federal Finance Department reported. At Nov. 29, the reserves of foreign currencies, gold and other monetary assets totaled $72.038 billion, up from $71.497 billion a month earlier.
All reserve figures are reported in U.S. funds. The government reported no official intervention in the foreign-currency market in November. There were 287 ounces of gold coins sold in November, leaving month-end gold holdings at 97,674 ounces………………………………………..Full Article: Source

Zimbabwe fund to tap mine royalties

Posted on 27 November 2013 by VRS  |  Email |Print

Zimbabwe’s planned sovereign wealth fund may get as much as a quarter of mining royalties and the same share of “special dividends” on state mineral and metal sales. A 16-member board will decide on the fund’s work, allowing it to make withdrawals, primarily to pay for infrastructural developments, according to a draft of the Sovereign Wealth Fund of Zimbabwe Act obtained by Bloomberg.
Parliament will also be able to appropriate money to benefit the fund, according to the bill, which does not set out where this money would be taken from. “That document will be taken to parliament sometime early next year,” Deputy Mines Minister Fred Moyo said in an interview on Friday………………………………………..Full Article: Source

Zimbabwean wealth fund to get share of mining revenues

Posted on 26 November 2013 by VRS  |  Email |Print

The planned sovereign wealth fund may get as much as a quarter of mining royalties and the same share of “special dividends” on state mineral and metal sales. Parliament will also be able to appropriate money to benefit the fund.
A 16-member board will decide on the fund’s activities, allowing it to make withdrawals, primarily to pay for infrastructure developments, according to a draft of the Sovereign Wealth Fund of Zimbabwe Act………………………………………..Full Article: Source

Zimbabwe wealth fund to get share of state mining revenue

Posted on 25 November 2013 by VRS  |  Email |Print

Zimbabwe’s planned sovereign wealth fund may get as much as a quarter of mining royalties and the same share of “special dividends” on state mineral and metal sales. Parliament will also be able to appropriate money to benefit the fund.
A 16-member board will decide on the fund’s activities, allowing it to make withdrawals, primarily to pay for infrastructure developments, according to a draft of the Sovereign Wealth Fund of Zimbabwe Act obtained by Bloomberg News………………………………………..Full Article: Source

Kenya economy to grow By 5.6 pct this year - Treasury

Posted on 18 November 2013 by VRS  |  Email |Print

The proposed sovereign wealth fund for Kenya should have an initial start-up capital of Sh10 billion, the presidential taskforce on parastatals has recommended. The fund will be funded mainly from capital increases from privatisation proceeds and surplus foreign exchange reserves as well as dividends from public enterprises. A key funding source for the fund will be expected returns from oil, gas and minerals.
According to the report, the purpose of the the fund is to r oll out local renewable energy schemes, fund restoration and rehabilitation of excavated areas and support government savings from mineral revenues to ensure sustainable and stable future incomes………………………………………..Full Article: Source

Tanzania: Bunge to decide on gas revenues, says Minister

Posted on 11 November 2013 by VRS  |  Email |Print

Parliament would decide how the country uses gas revenues through a Sovereign Wealth Fund, Deputy Minister for Energy and Minerals, Mr George Simbachawene has said. He said in Parliament that the august House would prioritise where the fund should concentrate in terms of development projects.
He also said the government has plans to give Tanzania Petroleum Development Corporation (TPDC) two wells in the Indian Ocean so that it also fully gets involved in exploration for gas and oil………………………………………..Full Article: Source

Norway c.bank will not buy any foreign currency for oil fund in Nov

Posted on 01 November 2013 by VRS  |  Email |Print

Norway’s central bank will not sell any Norwegian crowns in November to buy foreign currency for the country’s $810 billion sovereign wealth fund, the bank said on Thursday, cutting its purchases from 100 million crowns a day in October.
Norway’s 2014 budget bill anticipates lower tax revenue transfers to the oil fund and analysts have said that the bank, which manages the fund, could reduce its purchases as early as November. The fund invests Norway’s revenues from oil and gas production for future generations. It is the world’s largest sovereign wealth fund…………………………….Full Article: Source

Norway central bank head urges premier not to overspend oil cash

Posted on 31 October 2013 by VRS  |  Email |Print

Norway’s central bank Governor Oeystein Olsen urged lawmakers not to spend more than 3 percent of the nation’s oil fund as the new government reworks next year’s budget.
Norway, which uses oil money to plug its budget deficits, caps the spending at 4 percent of its $810 billion sovereign wealth fund to avoid overheating the economy. Olsen already in 2012 said 4 percent was too much, as the rule he helped design last decade is being undermined by the surging size of the fund……………………………..Full Article: Source

China said to study investing more reserves in European property

Posted on 16 October 2013 by VRS  |  Email |Print

China’s agency that manages the nation’s $3.66 trillion of foreign-exchange reserves is looking to make more investments in European property, two people familiar with the situation said.
The State Administration of Foreign Exchange, seeking to diversify the nation’s investments, is looking at real estate and infrastructure projects with a focus on the U.K., France, Germany, Poland and the Czech Republic, said the people, who asked not to be identified as they weren’t authorized to speak publicly about the matter. Valuations for such projects are currently at an attractive level, they said………………………………………..Full Article: Source

Norway cbank to sell NOK 100 mln a day for oil fund in Oct

Posted on 01 October 2013 by VRS  |  Email |Print

Norway’s central bank will sell 100 million crowns ($16.67 million) a day in October to buy foreign currency for the country’s $780 billion sovereign wealth fund, the same amount it sold in September, the bank on its page on Monday.
The fund, the world’s biggest sovereign wealth fund, invests Norway’s revenues from oil and gas production for future generations, buying bonds, stocks and real estate around the world………………………………………..Full Article: Source

Malaysia’s state investment fund needs more money

Posted on 16 September 2013 by VRS  |  Email |Print

Malaysia’s state investment fund 1Malaysia Development Bhd (1MDB) has boosted the target size of its planned initial public offering (IPO) of its energy assets to around $3 billion, Reuters reported on September 13, as the fund looks to repay debt incurred in a shopping spree for power plants. This would make the IPO one of Southeast Asia’s largest public stock offerings so far.
The public listing of 1MDB, which is chaired by Malaysia’s Prime Minister Najib Razak himself, has been delayed several times and originally sought to raise $1 billion to $2 billion. However, 1MDB is now expected to invite banks in October to formally pitch their services, and ready the fund for the $3 billion IPO by the first half of 2014………………………………………..Full Article: Source

Norway caps oil spending goal as inflation shock hits krone

Posted on 12 September 2013 by VRS  |  Email |Print

Norway Conservative Party leader Erna Solberg pledged to limit spending of the nation’s $750 billion sovereign wealth fund after a jump in inflation triggered the biggest surge in the krone in two months.
Solberg, who ousted Labor Prime Minister Jens Stoltenberg in elections this week after promising tax cuts, said she’ll probably keep well within a 4 percent spending rule of Norway’s oil fund amid concern Scandinavia’s richest economy is overheating. Her government, which she has yet to form, is likely to keep spending closer to 3 percent, she said………………………………………..Full Article: Source

Minister: Oil savings in Kazakhstan to be invested in country’s economy in 2014-2016

Posted on 11 September 2013 by VRS  |  Email |Print

Investments from oil savings in country’s economy will be carried out in Kazakhstan in 2014-2016, Kazakhstan’s Minister of Economy and Budget Planning Erbolat Dosayev said on Tuesday.
“The guaranteed transfer from the National Fund will amount to 1,380 billion tenges per year. Also target transfer worth 150 billion tenges will be attracted from the National Fund in 2014,” the Minister said………………………………………..Full Article: Source

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