FEM – Macroeconomic Stabilization Fund
|Venezuela||US$ 0.8 Billion|
Transparency Rating: 1
Firm Investment Style: Mixed
Entity Structure: Fund
In 1998, Venezuela’s Macroeconomic Stabilization Fund also known as FEM was created as a result of advice from the International Monetary Fund.
Oil revenues above the oil reference price are transferred to the sovereign wealth fund.
If oil prices drop below the reference price, the fund transfers revenues to the treasury to substitute the revenues it would otherwise have received if oil prices had been stable.
Strategies & Objectives:
Approved annual fund reports are submitted to congress no later than fifteen days.
Executive management of the central bank is appointed by the Venezuelan president.
The legislature has limited involvement with any decision-making regarding the fund, nor does it have an oversight role.