Central Bank has reported that Guyana’s Natural Resource Fund (NRF) received a combined total of $56.02 billion in royalties and profit oil for July, 2024.
Specifically, the NRF saw an inflow of $21.08 billion from royalties, while profit oil contributed a further $34.95 billion. These funds have bolstered the NRF’s balance, which, after accounting for withdrawals and investment income, stood at $594.87 billion at the end of July 2024.
This financial performance underscores the continued growth of Guyana’s oil revenues, which play a crucial role in the country’s economic development. The report also highlights the careful management of these funds, with no expenses reported against the fund for the month, ensuring that the entirety of the inflows contributes to the nation’s financial reserves.
Additionally, the Bank of Guyana’s commitment to prudent management of the NRF is reflected in decisions made by the Board of Directors earlier in the year. At a meeting held on May 16, 2024, the Board directed that the funds be maintained in a deposit account at the Federal Reserve Bank of New York, earning overnight deposit interest at the prevailing federal funds rate of 5.30%.
It was also agreed that Bank of Guyana would closely monitor the overnight interest rate and inform the Chairman of any changes made by the Federal Reserve to assess the feasibility of redeploying cash. As of the end of June 2024, there had been no changes made to the investment mandate, as the federal funds rate remained stable within the range of 5.25% – 5.5%.
