Macroeconomics

Slovenia to Consolidate State-Owned Assets into Proposed SWF

Slovenia is planning to consolidate state-owned assets into a sovereign wealth fund. By merging the different agencies, Slovenia hopes to enhance revenue and improve organizational efficiency. The five agencies manage assets of more than €10 billion. Over time, the Government of Slovenia will decide which assets to dispose of. The proposed sovereign fund’s profits will [...]


The CIC and Being on Equal Footing in Europe

In recent weeks, the China Investment Corporation (CIC) has been in the news headlines for its economic view on Europe and current investment activity in the region. It is well known over the past three decades, more importantly this last decade; China has accumulated vast foreign reserves. Created in 2007, the CIC was tasked to [...]


ECB Cuts Benchmark Rate Down to 1.25%

With Greece holding a bailout referendum, downside risk is growing among continental European nations. European leaders made it clear that Greece will give up all European aid if it votes against the agreed bailout package from last week. The European Central Bank (ECB) is doing everything it can to prevent another recession. In addition, the [...]


Public Information: Yves Mersch: Current Challenges in the Sovereign Debt Crisis

This is public information released by the BIS. Speech by Mr Yves Mersch, Governor of the Central Bank of Luxembourg, at the SWF (Sovereign Wealth Fund) Forum, Montreux, Switzerland, 24 October 2011 To download the full speech (BIS) To download the full speech (SWF Institute) Ladies and Gentlemen, It is my pleasure and privilege to [...]


High Probability Sovereigns to Hold Treasuries Despite Downgrade

Sovereign wealth funds and other governmental investors will likely continue to hold positions in U.S. treasuries, at least in the short-run. Last Friday, Standard & Poor’s downgraded the United States, while Moody’s and Fitch Ratings affirmed their AAA status for the United States. This downgrade is unlikely to cause any mandatory sell-off of treasuries or [...]


China’s Love-Hate Relationship with Treasuries

China possesses nearly $3.2 trillion in foreign exchange reserves, mostly in U.S. dollar assets. U.S. treasuries are one of the most actively traded financial instruments on the planet and most liquid. Unwarranted volatility and market uncertainty would weaken the already fragile stability of the international financial system. A short term crisis has been averted; however [...]


UAE Central Bank Issues Statement on Media Queries Over American Public Debt

According to the Emirates News Agency, “Due to the controversy at the legislative authorities in the US, around the public debt of the US Government, we have received some questions from local and foreign media entities, said the Central Bank of the UAE in a statement. It added that the Central Bank of the UAE [...]


Japan Intervenes in Forex Market to Curb Yen’s Strength

As a tool, central banks often intervene in the foreign exchange market when the buy or sell currencies to influence exchange rates. On Thursday, Japan acted alone to curb the yen’s strength in a unilateral intervention. This was the first time since Japan’s March tsunami that the Bank of Japan intervened in the foreign exchange [...]


CIC Making Progress on Managing More Assets

The China Investment Corporation has not received the proposed capital injection from the Chinese Government. It will take some considerable time and analysis.  Some members of the press and media reported the CIC already received the funding; however, the CIC is making progress on its goal of managing more funds for the Chinese Government. The [...]


CIC remarks at the OECD Forum 2010

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