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BSP can sell dollars to govt if sovereign wealth fund created — Tetangco

March 20, 2013 5:59pm

The establishment of a sovereign wealth fund is still "on the drawing board," but if one is set up the Bangko Sentral ng Pilipinas can sell dollars to the government, the head of the central bank said Wednesday.

"As the Secretary of Finance has mentioned, it is still in the early stages. So it's very much on the drawing board right now. Based on the study, they’ll be able to determine whether that is something that the government would want to establish," BSP Governor Amando Tetangco Jr. said on the sidelines of the Chamber of Thrift Banks annual convention in Makati.

He added that "if the government decides to put up this sovereign wealth fund we can, as I’ve said, provide the dollars, sell them dollars, which they can use to fund their investment operations, particularly abroad."

A sovereign wealth fund is an investment fund sourced from a country's reserves and may be composed of a variety of financial assets including stocks, bonds, and property. Sovereign wealth funds are invested globally.

In February, the country's gross international reserves stood at $83.8 billion, down from January's reserves of $85.8 billion. — BM, GMA News
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