Natural Resource Fund records GY$31.5M profit for Q1 2022

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The Natural Resource Fund (NRF) recorded a profit of $31.57 million (US$151,412.05) for the first quarter of 2022 solely due to interest earned on deposits. According to Bank of Guyana’s Q1 report, the market value of the Fund at March 31, 2022, stood at $150,081.21 million (US$719.81 million), an increase of 18.46% ($23,386.90 million / US$112.17 million) from the previous quarter.

During the period under review, it was noted that inflows into the Fund amounted to $23,355.33 million (US$112.02 million) comprising of profit oil – $20,000.99 million (US$95.93 million) and royalties – $3,354.34 million (US$16.09 million). Central Bank said these funds were deposited into the NRF Account held at the Federal Reserve Bank of New York.

Since its inception, the Fund has received $133,131.54 million (US$638.52 million) from 10 lifts of profit oil and G$16,889.63 million (US$81.01 million) from royalties. In March 2022, the Federal Reserve increased its target range for the federal funds rate from 0% – 0.25% to 0.25% -0.5%. As a result, the interest rate on overnight deposits was increased, and the Fund was able to earn a higher level of interest income on its overnight deposits. Additionally, the Fund earned $31.57 million (US$151,412.05) in interest income over the quarter compared to $13.72 million (US$65,823.49) the previous quarter.

To date, there has been no investment mandate for the Fund and all petroleum revenues are held as cash deposits in the NRF account. A revised NRF Act was passed in the National Assembly and assented to by President Irfaan Ali on December 30, 2021. This revised Act assigns the responsibility for the preparation of the investment mandate to a Board of Directors.


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