Foreign exchange reserves
The foreign exchange reserves and claims on the International Monetary Fund (IMF) together constitute Norges Bank's international reserves.
Norges Bank's foreign exchange reserves are to be available for use as part of the conduct of monetary policy with a view to promoting financial stability and to meet Norges Bank's international commitments.
The reserves are divided into a fixed income portfolio and an equity portfolio. In addition, a petroleum buffer portfolio receives the government's cash flow from petroleum activities in foreign currency and transfers from the Government Pension Fund Global (GPFG).
The foreign exchange reserves are to be invested so that at least SDR 10 billion can be used within a single trading day without having to realise any appreciable losses. The foreign exchange reserves may be invested in cash deposits, money market instruments, bonds, short-term paper, and equities listed on a regulated exchange. The foreign exchange reserves may not be invested in securities excluded from the GPFG's investment universe.
The fixed income portfolio's benchmark index is a market-weighted index of all sovereign bonds with a residual maturity of between one month and 10 years issued by France, Germany, Japan, the UK and the US. The equity portfolio's benchmark index is a tax-adjusted version of the FTSE All World Developed Market Index with geographical restrictions. Exposure to equities shall not exceed 45 percent of the market value of total exposure in the equity and fixed income portfolios.
Claims on the IMF
Claims on the IMF consist of three components: SDR accounts (Special Drawing Rights), reserve positions in the IMF and loans to the IMF (Poverty Reduction and Growth Facility). The Executive Board of Norges Bank has delegated the responsibility of establishing guidelines for management of the SDR to the Governor.