Central Banking

Bangladesh’s Aspiration for a Sovereign Wealth Fund

Bordering India, Bangladesh is a nation of 160 million people. The Bangladesh government artfully decided and gave initial approval to have a sovereign wealth fund for the country with authorized capital of US$ 10 billion. The matter was discussed at a cabinet meeting chaired by Bangladesh Prime Minister Sheikh Hasina. [ Content protected for Sovereign […]


turkey

More Companies Held by Treasury Transferred to New Turkish Sovereign Fund

According to Turkey’s official gazette, the Turkish government transferred its ownership stakes in a number of holdings to its new sovereign wealth fund called Turkey Asset Management Company, also known as Türkiye Varlık Fonu Yönetimi Anonim. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Central Bank of Venezuela Names Legislator as New Governor

The Central Bank of Venezuela, also known as Banco Central de Venezuela (BCV) has a new governor. Venezuela President Nicolas Maduro named Ricardo Sanguino as the new central bank governor, replacing Nelson José Merentes Díaz (Nelson Merentes). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


SWFI – Movers and Shakers – January 21, 2017

BREXIT EXPERT HIRE #1: BlackRock Names Former UK Chancellor Osborne as Senior Adviser George Osborne, the former U.K. Chancellor of the Exchequer, is joining the BlackRock Investment Institute as a part-time senior adviser in February 2017. As of December 31, 2016, BlackRock manages US$ 5.1 trillion in assets. In a statement, BlackRock CEO Larry Fink […]


Bank of Korea Entrusted KIC with $5 Billion in 2016

In a show of confidence, the Bank of Korea, the country’s central bank, had allocated US$ 5 billion to the Korea Investment Corporation (KIC) to manage back in 2016. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


london

Financial Stability Board Publishes Policy Recommendations for Asset Managers

The growth of alternative investments has added diversity to the financial system, but at the same time increasing greater complexity. Basel-based Financial Stability Board (FSB) published its Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities. The FSB is chaired by Mark Carney, Governor of the Bank of England. [ Content protected for Sovereign […]


SOFAZ to Transfer $4 Billion for Currency Stabilization Purposes

A predicted increase in U.S. interest rates is wrecking havoc in countries such as Turkey and Azerbaijan. Azerbaijan President Ilham Aliyev issued a decree to transfer up to 7.5 billion manat (US$ 4 billion) of assets from the State Oil Fund of Azerbaijan (SOFAZ) to the Central Bank of the Republic of Azerbaijan in 2017. […]


Oman Explores Idea of GCC Peers to Deposit Dollars into Central Bank

Oman’s Ministry of Finance is working with its Gulf Arab counterparts on receiving a multi-billion dollar deposit into its central bank. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


Chinese Foreign Reserves End Year Slightly Above $3 Trillion

China policymakers appear to be preferring implementing capital controls in the country instead of blazing through their massive pool of foreign exchange reserves to guard the yuan. For example, the Chinese government increased paperwork for the country’s citizens seeking to use their annual US$ 50,000 foreign exchange maximum. More strict capital controls could be underway. […]


SELF FINANCING: $5 Billion in Venezuelan Bonds

Venezuela is one country where almost zero sovereign wealth capital flows into versus its neighbor Brazil, according to SWFI transaction data. One-time Latin American paradise, Venezuela is on the brink of utter chaos, as inflation heads for 1000%. Venezuela at one point had some of the largest oil reserves in the world and at one […]


3 Considerations in Liquidity Management for Sovereign Funds

Sovereign investors and central bank reserve managers continually monitor price trends in exports, commodities and other macro-level inputs, as these factors can have a material impact on liquidity management strategies. On the sovereign wealth front, some of these institutional investors have a wide range of liabilities depending on government policy, applicable withdrawal legislation, funding sources […]


Friday SWFI News Roundup, December 30, 2016

BIG DEAL: RBI Approves Fairfax Financial’s Bid to Buy Domestic Indian Bank The Reserve Bank of India (RBI) approved Canadian billionaire Prem Watsa’s Fairfax Financial Holdings Ltd. ‘s bid to acquire a 51% ownership stake in Thrissur, Kerala-based Catholic Syrian Bank Ltd. This is a milestone deal because this is the first time the RBI […]


AGAIN: BOJ on Target to Become Largest Purchaser of Japanese ETFs

According to data by the Bank of Japan (BOJ), the central bank is on track to become the largest purchaser of Japanese exchange-traded funds (ETF) in 2016. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]


ECB debt

ECB to Fully Shift Bond Buying Mandate from Money Managers to Central Banks

The European Central Bank (ECB) has mandated the national central banks of each country will conduct the remainder of the ECB’s asset-backed securities purchase program starting April 1, 2017, instead of money management firms. The official name of the program was ABS purchase programme (ABSPP). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers […]


Federal Reserve Raises Rates for the First Time Since 2016

The U.S. Federal Reserve has raised interest rates by 0.25%. The committee decided to raise the target range for the federal funds rate to 0.5% to 0.75%. The decision takes effect on December 15, 2016. The move was widely expected. This is the first benchmark interest rate increase in 2016 and only the second rate […]


Blankfein Remains, Changing of the Guard at Goldman

Lloyd Blankfein, the Chairman and CEO of Goldman Sachs, likes his job and appears he will remain the boss for quite some time. In November, Michael S. Sherwood, the Vice Chairman of Goldman Sachs and co-CEO of Goldman Sachs International, announced his intention to retire at the end of 2016. Sherwood was known as “Woody” […]


Friday SWFI News Roundup, December 2, 2016

In case you missed – Follow the Money – Episode #25 Jo Taylor Promoted to Senior Managing Director, International Bjarne Graven Larsen, Chief Investment Officer, Ontario Teachers’ Pension Plan (OTPP), announced that Jo Taylor has been promoted into the new role of Senior Managing Director, International, effective January 1, 2017. Taylor joined OTPP in 2012 […]


Saudi King Salman Approves New Funds for PIF

According to a statement by Saudi news agency SPA, Saudi King Salman mandated the moving of 100 billion SAR (US$ 26.67 billion) to be moved from the country’s foreign reserves to the Public Investment Fund (PIF). The moved capital will be used to back local and overseas investments.


PARALLEL CURRENCY: Reserve Bank of Zimbabwe Issues Bond Notes

Zimbabwe is encountering a wide-spread U.S. dollar cash crunch. The Reserve Bank of Zimbabwe, the country’s central bank, announced on November 28, 2016, they issued US$ 10 million in bond notes, creating a controversial quasi-currency to placate citizen frustrations. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. […]


DEVALUATION: Central Bank of Egypt Floats Pound

In a historic moment for Egypt’s monetary woes, the pound gets massively devalued. Since the 2011 uprising that ended the rule of Hosni Mubarak, Egypt has struggled to accumulate U.S. dollars (hard currency) as political fallout and unrest had driven away foreign institutional investors and tourists. Security issues have spooked many tourists from visiting Egypt’s […]