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Sovereign Wealth Funds Briefing - Category | Reserve Currencies more

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 More than USD 6 billion were withdrawn, and only USD 700 million remained in the fund………………………………………..Full Article: Source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The Libyan Government has denied reports that it has withdrawn US$7 billion from its foreign currency reserves.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

Norway has too much money

Posted on 10 September 2013 by VRS  |  Email |Print

Norway, like many super-rich nations, earns its wealth through selling oil, and is the third largest exporter on the planet. Oil in Norway comes primarily from the Barents Sea to the north and the North Sea to the South. Rather than spending frivolously on the unexpected wealth (unlike many a Gulf nation) or manipulate the oil markets, the Norwegian government kept their prices in line with the market, and placed the money in a sovereign wealth fund.
Norway’s Government Pension Fund, which holds nearly 2% of all of Europe’s stocks, is currently valued at $750 billion………………………………………..Full Article: Source

Central banks, SWFs make up less than 1 pct of FX trade - BIS

Posted on 06 September 2013 by VRS  |  Email |Print

Trading by central banks and sovereign wealth funds account for less than 1 percent of the $5.3 trillion (3.40 trillion pounds) a day FX market, while smaller and regional banks make up nearly a quarter, a survey showed on Thursday.
Trading by central banks is seen by most FX traders as highly influential, mainly because they tend to deal in large amounts at a time. However, their impact may be less than many think. The Bank for International Settlements’ 2013 FX survey showed hedge funds and proprietary trading firms made up around 11 percent of total FX trade, while institutional investors - such as pension funds and insurance companies - also comprised 11 percent………………………………………..Full Article: Source

Ghana saves $279 mln from crude oil revenue

Posted on 22 August 2013 by VRS  |  Email |Print

The country has been able to save close to $279 million from revenue earned from crude oil export for the first half of 2013. This is contained in the Ghana Petroleum Funds report on the country’s earnings from crude oil export since it started exporting crude.
According to the report, $77 million will be set aside for future generations in the Heritage Fund, while $202 million has accrued to the Stabilisation Fund to cushion the country in times of crude oil price volatility………………………………………..Full Article: Source

Super fund fortunes shift on FX exposure

Posted on 14 August 2013 by VRS  |  Email |Print

Unhedged foreign currency exposure may be the way to go for super funds after a fall in the Australian dollar contributed 8.8% to unhedged portfolios in the last financial year.
This bucks the trend of recent years. According to the NAB Superannuation FX Survey, released yesterday, fully hedged exposure to foreign equities has brought considerably higher returns over the last 10 years, adding 25%………………………………………..Full Article: Source

Mexico’s reserves rise by $5.8 bln

Posted on 14 August 2013 by VRS  |  Email |Print

Mexico’s foreign reserves have risen by $5.81 billion to nearly $169.33 billion this year, with all figures as of Aug. 9, the Bank of Mexico said Tuesday.
Gold and foreign currency reserves rose by $277 million in the week of Aug. 5-9, the central bank said. The money supply fell by 7.41 billion pesos (about $580 million) to 769.58 billion pesos ($60.26 billion) last week………………………………………..Full Article: Source

China: Central bank eyes new agency for forex investment

Posted on 07 August 2013 by VRS  |  Email |Print

Central bank hopes agency separate from sovereign wealth fund would improve returns on its US$3.5 trillion reserves, sources say. The People’s Bank of China (PBOC) is working on a plan to establish a new government agency to invest its US$3.5 trillion of foreign exchange reserves abroad more efficiently.
The new agency would be in addition to the China Investment Corp (CIC), the nation’s sovereign wealth fund. The information was given to the South China Morning Post by two sources close to the central bank……………………………………….Full Article: Source

China foreign exchange reserves fall in May, June

Posted on 01 August 2013 by VRS  |  Email |Print

Chinese foreign exchange reserves fell in May and June, providing fresh evidence that capital is again leaving the country as the domestic economy slows and global risks rise. People’s Bank of China data showed foreign exchange reserves rising $91.8 billion in April but then falling $19.7 billion in May and another $18.1 billion in June.
May and June’s apparent outflows were the heaviest since March to May last year. The foreign exchange reserve numbers follow data suggesting that China is again seeing capital outflows on the back of a slowing economy and noises in Washington about the beginning of the end of quantitative easing………………………………………..Full Article: Source

China: Putting foreign exchange reserves to better use

Posted on 01 August 2013 by VRS  |  Email |Print

While an appreciating yuan may have taken the sting out of the Sino-U.S. currency quarrel, the issue has not quite gone away. Come autumn, when Chinese leaders meet over major reforms, we can expect the liberalization of exchange rates to accelerate.
The inception of China Investment Corp. (CIC) six years ago marked the birth of a true sovereign wealth fund for China. Though it is undoubtedly heading in the right direction, the CIC is hobbled by the terms of its inception……………………………………….Full Article: Source

China needs market discipline to manage its foreign exchange wealth

Posted on 25 July 2013 by VRS  |  Email |Print

Hu Shuli says the government must look at restructuring its sovereign investment companies to compete on the global stage for better returns. The inception of the China Investment Corporation six years ago marked the birth of a true sovereign wealth fund for China. Though it is undoubtedly heading in the right direction, the CIC is hobbled by the terms of its inception.
For its funds, it relies on the foreign exchange reserves bought with the special bonds issued by the Ministry of Finance. The cost of this money is high, while it may invest only in low-risk, low-return financial products. This mismatch has limited its operations………………………………………..Full Article: Source

China sees no major forex withdrawal: regulator

Posted on 23 July 2013 by VRS  |  Email |Print

Chinese banks bought less foreign exchanges than they sold in its bank-to-client forex transactions in June, registering a deficit of $400 milliondollars, latest data showed Monday.
It is the first such deficit since September, according to the State Administration of Foreign Exchange (SAFE). Bank-to-client foreign exchange transactions are a major source of fluctuation in China’s foreign exchange reserves………………………………………..Full Article: Source

China’s Zhu Changhong helps steer nation’s currency reserves

Posted on 17 July 2013 by VRS  |  Email |Print

At an official Chinese New Year’s party earlier this year, a former bond trader named Zhu Changhong was hailed for the smart choices he made investing the world’s largest stash of cash: China’s $3.5 trillion in foreign reserves.
Tweaking the lyrics of a famous revolutionary song that extolled Mao Zedong, Mr. Zhu’s colleagues jocularly lauded him: “The east is red, the sun rises. From China arises Zhu Changhong…he is SAFE’s savior,” people with knowledge of the event say. SAFE is China’s State Administration of Foreign Exchange, the division of the central bank that manages China’s currency reserves and is one of the most powerful investors in the world………………………………………..Full Article: Source

Norway to sell 200 mln crowns daily in July for wealth fund

Posted on 01 July 2013 by VRS  |  Email |Print

Norway’s central bank will sell 200 million Norwegian crowns ($32.96 million) a day in July to buy foreign currency for its $720 billion sovereign wealth fund, unchanged from its June policy, it said on Friday.
The fund, commonly known as the oil fund, invests Norway’s revenues from oil and gas production for future generations. It is the world’s largest sovereign wealth fund. The Nordic country is the world’s seventh-biggest oil exporter and Western Europe’s top gas exporter…………………………………Full Article: Source

Azerbaijan’s Central Bank increases foreign exchange reserves in Q1

Posted on 20 June 2013 by VRS  |  Email |Print

The Central Bank of Azerbaijan (CBA) increased its foreign exchange reserves held in securities by 13.24 percent in January to May 2013 compared to the same period of last year, the CBA’s statistical report released on Tuesday says.
As of late May, some 2.72 billion manat or 21.8 percent of the total foreign exchange reserves held by the Central Bank were placed in securities. According to the report, 9.11 billion manat are held in deposits in the accounts of other central banks, the Bank for International Settlements and the International Monetary Fund……………………………………….Full Article: Source

CBA’a foreign exchange reserves exceed $12.5 bln

Posted on 06 June 2013 by VRS  |  Email |Print

By the end of May 2013, the total amount of currency reserves held by the Central Bank of Azerbaijan (CBA) reached $12.572 billion, the bank said in a statement posted on its website.
According to the statement, since the beginning of the year currency reserves have risen by 7.5 percent, or $877.5 million (the Central Bank’s foreign exchange reserves amounted to $11.694 billion in early 2013). Year on year, the level of foreign currency reserves of the Central Bank of Azerbaijan has increased by 15.42 percent, or $1.680 billion………………………………………..Full Article: Source

South Korea’s foreign reserves fall

Posted on 06 June 2013 by VRS  |  Email |Print

South Korea’s foreign reserves fell last month as the US dollar appreciates, which was caused by expectations for the early end of quantitative easing reduced the conversion value of non-dollar assets, central bank data showed Wednesday.
Foreign reserves were $328.1 billion as of the end of May, down from $328.8 billion in the prior month, according to the Bank of Korea (BOK). The BOK attributed the fall to a slide in the conversion value of non-dollar assets such as the European single currency and the British pound………………………………………..Full Article: Source

Azerbaijan Oil Fund weighs buying Yuan after Aussie, Lira, Ruble

Posted on 05 June 2013 by VRS  |  Email |Print

Azerbaijan`s State Oil Fund, known as SOFAZ, is considering investing in the Chinese yuan as it broadens expansion into new currencies to diversify reserves.
“We are currently exploring the Chinese currency,” SOFAZ Executive Secretary Shahmar Movsumov told reporters in Baku. “There are some institutional problems to resolve. Investors cannot just come and invest in China any time they wish. There are some very strict terms.”……………………………………….Full Article: Source

Russia’s Reserve Fund amounted to RUB 2.666 trillion on June 1

Posted on 05 June 2013 by VRS  |  Email |Print

As of April 1, 2013, Russia’s Reserve Fund amounted to RUB 2.666 trillion ($84.39 billion), the National Wealth Fund totaled RUB 2.739 trillion ($86.72 billion), Russia’s Ministry of Finance informed.
Aggregate income from the Reserve Fund deposits on foreign currency accounts with the Bank of Russia, denominated in US dollars, over the period from January 15 to May 31, 2013, was estimated at $0.09 billion, which is equal to RUB 2.77 billion. From January 1 to May 31, 2013, the exchange rate difference from revaluation of these balances was negative RUB 66.77 billion………………………………………..Full Article: Source

Brazil foreign exchange reserves drop $4.25 bln in May

Posted on 05 June 2013 by VRS  |  Email |Print

Brazil’s foreign currency reserves in May fell $4.25 billion to $374.42 billion from $378.66 billion in April, the Central Bank of Brazil said on its website late Monday.
According to economists, the decline likely occurred due to an adjustment in the prices of assets held, such as U.S. Treasurys, which make up the larger part of Brazil’s foreign reserves. The central bank doesn’t comment on the performance of foreign reserves. So far this year, foreign reserves have fallen $4.2 billion. They ended 2012 at $378.6 billion………………………………………..Full Article: Source

ADB sees non-oil sector as Azerbaijan’s major driver of growth in 2013

Posted on 04 June 2013 by VRS  |  Email |Print

The Asian Development Bank forecasts that Azerbaijan’s non-oil sector will be the major driver of growth in 2013 and the next few years. In its ‘Asian Development Outlook 2013: Asia’s Energy Challenge’ report, the bank said that growth is forecast to accelerate to 3.1% in 2013 and climb further to 4.8% in 2014, mainly because of public spending outside the oil sector and, in 2014, some increase in oil production.
“The State Oil Fund transfers should continue to provide about 60% of budget revenue. Salary increases, social development spending to support minimum living standards, the payment of pension plans inherited from the Soviet Union, and public investment outlays will be the main drivers of government expenditure in 2013,” the report reads……………………………………….Full Article: Source

Azerbaijan Oil Fund weighs buying yuan after Aussie, Lira, Ruble

Posted on 30 May 2013 by VRS  |  Email |Print

Azerbaijan’s State Oil Fund, known as Sofaz, is considering investing in the Chinese yuan as it broadens expansion into new currencies to diversify reserves.
“We are currently exploring the Chinese currency,” Sofaz Executive Secretary Shahmar Movsumov told reporters today in Baku, the Azeri capital. “There are some institutional problems to resolve. Investors cannot just come and invest in China any time they wish. There are some very strict terms.”……………………………………….Full Article: Source

Trinidad & Tobago among top 10 in resource governance

Posted on 17 May 2013 by VRS  |  Email |Print

According to Revenue Watch’s Resource Governance Index, Trinidad and Tobago ranks 10th out of the 58 countries surveyed, scoring relatively high for publishing timely, regular reports on oil and gas production, prices and exports as well as sound Heritage and Stabilisation Fund governance.
The index report also credits Trinidad and Tobago for the quality and frequency of oversight and auditing of resource revenue, which is open to both parliamentary and public scrutiny. However, despite these strong points, the country has several areas for improvement including institutional reform to stem corruption, bolster the rule of law and improve budgetary transparency……………………………………….Full Article: Source

Serbian April foreign-exchange reserves fall on debt repayment

Posted on 15 May 2013 by VRS  |  Email |Print

Serbia’s foreign-exchange reserves fell 5.84 percent in April from the previous month as the government repaid half of its outstanding debt to the London Club of commercial lenders.
The reserves contracted to 11.15 billion euros ($14.46 billion) from 11.84 billion euros, Belgrade-based Narodna Banka Srbije said in an e-mailed statement today. Outflows included the repayment of 305.4 million euros to the London Club of bank lenders and 72 million to other creditors, while banks withdrew 274.3 million euros from their mandatory reserve accounts………………………………………..Full Article: Source

Nigeria: Crashing oil prices might wipe out Nigeria’s Excess Crude Account balances, IMF warns

Posted on 13 May 2013 by VRS  |  Email |Print

Despite a projection that Nigeria’s external reserves might rise to an average of between $80 and $85 billion in the next four years, the International Monetary Fund (IMF) has warned against the negative impact of the declining oil price in recent times, saying the country’s Excess Crude Account could be depleted under a year. The IMF’s Senior Resident Representative in Nigeria, Scott Rogers, gave the warning while presenting highlights of the Staff Report on the 2012 Article IV Consultation, to be published soon by the Fund.
According to Mr. Rogers, a decline in international oil prices to $97 per barrel (annual average) would begin to erode the ECA balances, while a fall to $80-85 is capable out wiping out ECA balances within a year; pointing out that with lower oil revenue and expenditure restraint by government, “fiscal deficits are projected to re-emerge.”…………………………………..Full Article: Source

President: Azerbaijan managed to avoid difficulties faced by several oil-producing countries

Posted on 08 May 2013 by VRS  |  Email |Print

The Azerbaijani government managed to wisely use the revenues from energy sector and avoid some complications that some oil-producing countries had, Azerbaijani President Ilham Aliyev said during the first South Caucasus Forum in Baku today.
“A very important mechanism of asset management was created, like the State Oil Fund of Azerbaijan, which is considered to be one of the most transparent funds among all the independent funds of the world,” he said………………………………………..Full Article: Source

Use oil money wisely, IMF tells Sudan

Posted on 26 April 2013 by VRS  |  Email |Print

The Sudanese government should use renewed oil revenue to provide a foundation to its economy, an International Monetary Fund representative said.The Sudanese government announced that oil began to flow through pipelines extending to Port Sudan in early April. South Sudan gained control over the bulk of the region’s oil reserves when it gained independence from Sudan in 2011.
Sudan controls the exports pipelines, however, and disputes over transit fees prompted the South Sudanese government to halt oil production in 2012. South Sudan gets nearly all of its revenue from oil………………………………………..Full Article: Source

India: FinMin opposes sovereign wealth fund out of forex reserves

Posted on 25 April 2013 by VRS  |  Email |Print

Finance Ministry has opposed creation of a $10 billion Sovereign Wealth Fund (SWF) to acquire oil and gas and fertiliser assets abroad, saying the country did not have sufficient foreign currency to support the fund. At a recent meeting called by PM’s principal secretary Pulok Chatterjee, departments of economic affairs and expenditure were of the opinion that cash-rich PSUs should use their reserves and decide independently on overseas acquisition on commercial terms, official sources said.
Planning Commissioned had mooted setting aside of $10 billion from the nation’s foreign-exchange reserves and creating a sovereign wealth fund to secure energy assets overseas………………………………………..Full Article: Source

China’s forex reserves, the largest in the world

Posted on 12 April 2013 by VRS  |  Email |Print

China’s foreign currency reserves rose in the first quarter by $130 billion, reaching a record $3,440 billion, roughly the size of Germany’s economy as a result of massive capital inflows. The advance is the biggest for a quarter, since the period from April through June 2011.
Strong growth in foreign capital inflows marks a significant change from last year when money was sent out money from China. Return of foreign funds accelerated the domestic lending, according to authorities in Beijing…………………………………..Full Article: Source

China’s foreign exchange reserves hit $3.4 trillion

Posted on 12 April 2013 by VRS  |  Email |Print

China is once again facing heavy capital inflows after its foreign exchange reserves posted their biggest quarterly increase since the second quarter of 2011. Reserves jumped $130 billion to $3.44 trillion in the first quarter, helping to fuel a surge in credit growth amid concerns about the level of debt in the economy.
The increase marks a sharp reversal from last year when money exited China. The return of cash from abroad helped stoke fast credit growth in the first quarter, according to the government. Total new financing in the economy increased 58 per cent to Rmb6.2 trillion ($1 trillion) compared to the first three months of 2012…………………………………..Full Article: Source

Norges Bank to sell NOK300mln-day in April for SWF

Posted on 28 March 2013 by VRS  |  Email |Print

Norway’s central bank said Wednesday it plans to sell 300 million Norwegian kroner ($51.4 million) a day in April to buy foreign currency on behalf of the Government Pension Fund Global, commonly known as the oil fund.
Norges Bank also sold NOK300 million daily in the first three months of the year to obtain foreign currency for the fund’s investments. The fund, set up in 1990 to safeguard Norway’s oil wealth, had a market value of NOK3,816 billion ($654 billion) at the end of 2012–making it one of the largest sovereign wealth funds in the world………………………………………..Full Article: Source

Georgia: For promoting investment, a prime minister and his billions are not soon parted

Posted on 26 March 2013 by VRS  |  Email |Print

Where should the line be drawn between a government official’s personal wealth and his or her public responsibilities? Amidst promises to use his own cash to stimulate business investment, compensate storm victims and prop up the state budget, billionaire Georgian Prime Minister Bidzina Ivanishvili is making any distinction ever blurrier.
Since becoming prime minister in October 2012, Ivanishvili has repeatedly announced plans for three, new government-run investment funds: a $2-billion sovereign wealth fund, an agriculture fund and a venture capital fund. The first would control state assets like the railway and the Georgian Oil and Gas Corporation; the second aid Georgia’s ailing agricultural sector; and the third provide public investment for new business……………………………………….Full Article: Source

Nigeria’s excess crude revenue used to finance petrol subsidy payments- Sanusi

Posted on 07 March 2013 by VRS  |  Email |Print

The Central Bank of Nigeria, CBN, Governor, Lamido Sanusi, has described the recent controversy surrounding Nigeria’s management of its excess crude revenue savings and external reserves as unnecessary, saying the Federal Government used part of the savings in the Excess Crude Account, ECA, to finance the controversial petroleum subsidy payments.
Payments by the Federal Government for subsidy on petroleum products supply and distribution, which was only N290 billion in 2009 rose astronomically in controversial circumstances to about N2.1 trillion in 2011, resulting in a national protest by Nigerians in January 2012 after the government announced a hike in the price of petrol………………………………………..Full Article: Source

Sanusi: Nigeria never had $67bln foreign reserves

Posted on 06 March 2013 by VRS  |  Email |Print

The Governor of the Central Bank of Nigeria (CBN), Mallam Sanusi Lamido Sanusi, has stressed the need for a thorough governance review of transparency and accountability in the oil sector. Sanusi said this while presenting a speech at a forum organised by members of the Metropolitan Club in Lagos Tuesday.
Responding to questions on Nigeria’s external reserves, the CBN helmsman who apparently was making reference to a recent feud between the Federal Government and a former vice-president of the World Bank, Mrs. Oby Ezekwesili, said the country never had $67 billion reserves in its history………………………………………..Full Article: Source

My Sojourn into the Excess Crude Account

Posted on 25 February 2013 by VRS  |  Email |Print

I knew for a fact that even after Obasanjo left office, foreign reserves accretion continued and peaked at almost $63 billion in September 2008.
It was only after the global economy went into a tailspin, oil prices crashed from a peak of $147 per barrel attained in July 2008, the US government allowed Wall Street investment bank Lehman Brothers to fail two months later, and foreign investors exited the Nigerian equities market in droves during the same period, that the country’s foreign reserves took a beating………………………………………..Full Article: Source

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November 2014
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