Norges Bank resumes the purchase of foreign currency for the Government Petroleum Fund as from July 2004
As from July, Norges Bank will resume daily purchases of foreign currency on behalf of the Government Petroleum Fund. The daily foreign currency purchases for July have been set at NOK 300 million. The background is that the rise in the oil price has increased the need for allocations to the Government Petroleum Fund.
Allocations to the Petroleum Fund will be covered partly by transfers of foreign exchange revenues from the State's Direct Financial Interest in petroleum activities (SDFI) and partly by Norges Bank's currency purchases in the foreign exchange market.
The foreign currency purchases will be determined on the basis of the difference between the estimated monthly allocation to the Petroleum Fund and foreign exchange revenues from SDFI in the month in question. Adjustments will be made for any revisions of estimates for the previous month. As a result, the daily purchases may vary somewhat from one month to the next. The daily foreign currency purchases will be fixed for a period of one month at a time. Any exchange market purchases will be announced on the last business day of the preceding month.
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