The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Abdullah Al-Hassan, Sue Brake, Michael Papaioannou, and Martin Skancke
INTERNATIONAL MONETARY FUND
Commodity-based sovereign wealth funds (SWFs) have been at a crossroads following the
recent fall in commodity prices. This paper provides a framework for commodity-based
SWF management, focusing on stabilization and savings funds, by (i) examining macrofiscal
linkages for SWFs; (ii) presenting an integrated sovereign asset and liability
management (SALM) approach to SWF management; and (iii) applying this framework to
a scenario where assets are being accumulated and to a scenario where the SWF is drawn
on to cover a financing gap due to lower commodity prices.