The transfer to GPFG was larger than expected in 2019. Transfers to the GPFG in 2019 were larger than expected. For that reason, the total amount of foreign exchange to be sold in 2020 has been reduced by NOK 20 billion.

Norges Bank purchases foreign currency from the State's Direct Financial Interest (SDFI) each month. If the government’s net cash flow from petroleum activities exceeds the non-oil budget deficit, some of the foreign exchange purchased from the SDFI is transferred to the Government Pension Fund Global (GPFG). Norges Bank sells the remaining amount in the market.

If the government’s net cash flow from petroleum activities is insufficient to cover the non-oil budget deficit, foreign exchange will be transferred from the GPFG to cover some of the budget deficit. Norges Bank will then sell foreign exchange from the GPFG, as well as the foreign exchange from the SDFI, in the market. Norges Bank performs this task on behalf of the government.  

For further information, see Norges Bank's foreign exchange transactions on behalf of the government.