Guyana’s Natural Resource Fund which currently holds a balance of USD $11,454.1 million or GYD $11.5B as at end of March 2020, has racked up a profit that stands at USD $1.6 million . This comprises of interest earned on deposits held with the Federal Reserve Bank of New York. But the interest that was made could have been way more had it not been for the COVID-19 pandemic.
This was outlined in Guyana’s inaugural report for the Fund, covering the first quarter of 2020.
The quarterly report notes that the Federal Reserve Bank had lowered interest rates in an effort to ensure economic stability during the coronavirus outbreak. Guyana Standard understands that the Federal Reserve lowered the US interest rate from a range of 1.50% – 1.75% to 1% – 1.25% and then again to 0% – 0.25%. This range is expected to be maintained until the economy is able to recover.
As for Guyana’s $1.6M in profit, this represents a return of 0.014% during the quarter.
The report which was released by the Ministry of Finance today is produced in accordance with section 38 (2) of the Natural Resource Fund Act 2019 which requires the Bank of Guyana to report on the performance and activities of the Natural Resource Fund. Central Bank is the designated Operational Manager of the Fund.