Central Bank getting ready to manage oil revenues

With oil revenues expected to be flowing as early as next year, the Bank of Guyana is preparing to manage those funds.
Central Bank Governor, Dr Gobind Ganga told reporters on Monday that training for staff will begin in September 2019 and that the bank will “start opening accounts” and “looking at investment avenues”.
Guyana has passed laws for the establishment of a Sovereign Wealth Fund or a Natural Resources Fund, which will manage the country’s revenues earned from the lucrative oil industry.
Principal explorer, ExxonMobil has already made 13 discoveries offshore, adding to the previously announced estimated recoverable resource of approximately 5.5 billion oil-equivalent barrels in the Stabroek Block.
This translates to billions of dollars in oil revenues, of which Guyana will be getting 50 per cent once costs incurred by ExxonMobil are recovered.
According to the Central Bank Governor, the bank is trying to forge a partnership with the Reserve Advisory and Management Programme out of the World Bank to aid in the process of operationalising the SWF.
“That will ensure that we have the wherewithal to operationalise the National Resource Fund or national Sovereign Wealth Fund,” he said.
The Bank of Guyana is responsible for holding the fund for its operational management while the Finance Minister is responsible for the overall management of the fund.
The Act states that the Central Bank shall establish a committee to be known as the Investment Committee which shall consist of six members to be appointed by the Finance Minister.
These members will include a nominee of the Minister who shall be the Chairperson of the Committee as well as another nominee of the Minister to be responsible for the petroleum sector, a nominee from the Opposition Leader, a nominee from the Guyana Association of Bankers and two ex-officio non-voting members.
This Investment Committee shall be responsible for advising the Minister and shall take account of the overall objectives of the fund; the current conditions, opportunities and constraints in relevant financial markets; international best practices in investment portfolio management; among other things.