Several observers have noted that the account in the Federal Reserve Bank of New York does not constitute the National Resource Fund (NRF). The account in the Federal Reserve is merely holding the oil revenues – at almost zero percent yield – until the Guyana government operationalises the NRF (hereafter “the Fund”). Operationalisation of the Fund means, among other things, at minimum, the government hires qualified individuals to manage the monies and release funds consistent with its budget priorities subject to parliamentary approval. It also involves employing and housing at the Bank of Guyana (BoG) a skilled fund manager, macroeconomist and international corporate lawyer. Of course, there will also have to be a supporting team of individuals.
For its part, the BoG has started to produce monthly statements and quarterly reports on the Fund. The central bank notes that by producing the reports it is fulfilling section 38 (2) of the Natural Resource Fund Act of 2019. Furthermore, the Bank notes that the reports are on the Natural Resource Fund even though the government is yet to formally establish it.
