Expert confirms the creation of sovereign wealth fund

[kevnutz]

Expert confirms the creation of sovereign wealth fund 27/02/2011

Invitation to benefit from high world oil prices

BAGHDAD - morning

Expect an economist to pour the process of rising oil prices, global interest of supporting the budget and some strategic projects in the country, particularly that Iraq had built its budget on the basis of the general default price of oil was 76.5 dollars a barrel.

The appearance of Dr. Mohamed Saleh during his speech for the (morning): The financial planning for the construction of Moznat of the country does not depend mainly on price shocks, but that Iraq could exploit the gains in oil prices and the surface of Finance to issue Fund (sovereign wealth), which confirmed that Fund is able to provide extra resources can then by proper planning and support of many of the vital facilities in the general budget Kalptaqp ration.

And the benefit of what we can leave such an increase in oil prices globally have a positive effect on the economic reality in the country, particularly since the default value that is built on the basis of which the general budget estimated price of a barrel of oil at 76.5 dollars, now stands at the gates of the $ 100 or higher , and the difference between the two rates hurt the interests of the general budget, is that Saleh stressed the importance that does not rely so much on the price variables taking place in the world oil markets, likely not to continue these altitudes for long periods, which invited him to stress the importance of the exploitation of these gains in support of some important areas in the general budget.

And Saleh said the budget was built on according to the installed dynamically, and in the case of a financial surplus which is the (buffer) is hedging it, especially since the country depends on the financial resource of one, stressed that the reactivation of sovereign wealth fund is important in the protection of the financial resources of the public budget.

[puff26]

Thanks for the post

[dflake]

For those that aren't exactly sure what this is, like myself . I had to look it up. Explanation and definition of "sovereign wealth fund".

Reference:

http://www.investopedia.com/terms/s/sovereign_wealth_fund.asp

What Does Sovereign Wealth Fund - SWF Mean?

Pools of money derived from a country's reserves, which are set aside for investment purposes that will benefit the country's economy and citizens. The funding for a sovereign wealth fund (SWF) comes from from central bank reserves that accumulate as a result of budget and trade surpluses, and even from revenue generated from the exports of natural resources. The types of acceptable investments included in each SWF vary from country to country; countries with liquidity concerns limit investments to only very liquid public debt instruments.

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Investopedia Says

Investopedia explains Sovereign Wealth Fund - SWF

Some countries have created SWFs to diversify their revenue streams. For example, the United Arab Emirates (UAE) relies on oil exports for its wealth; therefore, it devotes a portion of its reserves to an SWF that invests in other types of assets that can act as a shield against oil-related risk.

The amount of money in these SWF is substantial. As of May 2007, the UAE's fund was worth more than $875 billion. The estimated value of all SWFs is pegged at $2.5 trillion.

[haymon]

Show me the Dinar!!