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With sovereign wealth funds rapidly gaining importance in the international monetary and financial system, the IMF has stepped up its work across a broad range of issues related to these state-owned funds, including their impact on global financial stability and capital flows.
The IMF is organizing a survey of SWFs to help identify their investment objectives and risk management practices. The IMF is coordinating its work on SWFs with the OECD and is also liaising closely with the European Commission, the World Bank, and others. The OECD is taking the lead on issues related to investment policies and regulations in recipient countries.
The IMF's Executive Board will discuss a paper in late March that sets out the Fund's work program regarding SWFs. In the Board paper, the IMF staff seeks the agreement of the Executive Directors to proceed with preparing a set of best practices for managing SWFs. If the Board agrees, the IMF will collaborate with SWFs and other stakeholders in developing a statement of best practices. The aim is to present a draft to its Executive Board by the IMF's Annual Meetings in October.