Oil Revenues Stabilization Fund of Mexico

mexico minfinance Oil Revenues Stabilization Fund of Mexico

Country: Mexico mexico flag1 Oil Revenues Stabilization Fund of Mexico

Established: 2000

US$ Billion: 6

Transparency Rating: n/a

 Origin: Commodity 

Firm Investment Style: n/a

Entity Structure: Fund


Summary:
Mexico’s government finances are heavily dependent on the petroleum industry. In 2000, the fund was created to lessen the effect on public finances and the national economy when there are declines in oil revenues. The fund receives inflow from a special levy on oil revenues.		 Strategy & Objectives:
The fund was created for stabilization purposes, rather than intergenerational savings. The fund invests in short-term money market instruments together with the entire central bank’s foreign exchange reserves.

Governance:
Mexico’s Secretariat of Finance and Public Credit formed the Technical Committee to manage operations and governance. They aim to preserve an adequate level of liquidity required for the purpose of the fund. The oil fund’s resources are managed and invested by the Central Bank of Mexico Banco de México.