The governance and regulation of sovereign wealth funds and foreign exchange reserves in a post-GFC world

Mohamed Ariff, John Farrar

Research output: Chapter in Book/Report/Conference proceedingChapterResearchpeer-review

Abstract

Extract: In recent years, largely as a result of globalisation, states have been build¬
ing up substantial portfolios of assets in other countries. Most of these holdings have been of bonds and marketed equities but some are direct ownership. These funds are normally labelled sovereign wealth funds (SWFs). The initial growth in such funds came from oil-rich countries which wanted to convert at least some of the sales of their oil into other assets that could be used in the future rather than simply into current
consumption. A well-managed fund of that form might be able to sustain living standards once oil was depleted. In the early years such funds were small compared with global assets and their holders tended to spread their ownership so they were not a threat to the management of firms or countries and could be treated like any other institutional investor (Truman, 2010; Xu and Bahgat, 2010; Shemirani, 2011)
Original languageEnglish
Title of host publicationGlobalisation, the Global Financial Crisis and the State
EditorsJohn Farrar, David G Mayes
Place of PublicationCheltenham, UK
PublisherEdward Elgar Publishing
Pages272-292
Number of pages22
Edition1
ISBN (Print)9781781009420
DOIs
Publication statusPublished - 2013

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Ariff, M., & Farrar, J. (2013). The governance and regulation of sovereign wealth funds and foreign exchange reserves in a post-GFC world. In J. Farrar, & D. G. Mayes (Eds.), Globalisation, the Global Financial Crisis and the State (1 ed., pp. 272-292). Cheltenham, UK: Edward Elgar Publishing. https://doi.org/10.4337/9781781009437.00021