As the Mauritius rupee has been strengthening in recent years and the exchange rate has been quite volatile as well. To ensure greater stability of the forex market, the Government of Mauritius is creating a Sovereign Wealth Fund that will be invested in a range of asset classes abroad. However, forex market stability will not be the sole objective of the Fund. It will also seek higher returns on the country's excess foreign currency reserves and other public sector foreign currency holdings whilst minimizing the risks. The Fund will start with a portfolio of USD 500 million. The Treasury Foreign Currency Management Fund will be closed down and its investments totalling some USD 150 million will be transferred to the Sovereign Wealth Fund. The remaining USD 350 million will come from the country's foreign currency reserves. The Bank of Mauritius Act will be amended accordingly.
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1 comment:
Hi Mr. Bheenick, very interesting blog. Did Mauritius set up the fund? Or was another sovereign fund eventually set up?
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