27.10.2011 - Sovereign wealth fund must save in foreign currency
Australia needs to establish a sovereign wealth fund to capitalise on the resources boom, but any funds should be saved in a foreign currency to protect against the negative effects of a sharp appreciation of the Australian dollar, according to Investec. "Most sovereign wealth funds save in foreign currencies. Now that does a number of things, by far the most important is that you're taking some of the surpluses that are accumulating as a result of a resource bonanza and saving them for future generations," Investec Asset Management global strategist Michael Power told Investor Weekly...............................................Full Article: Source
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