SWF Radar IMF

AFP reports that, “[Hillary Clinton said in an interview published in the Financial Times on Monday] that if she were elected, she would direct her National Economic Council to work with the International Monetary Fund and the World Bank to put together new ‘transparency rules’ for sovereign wealth funds.”

AFX News reports that, “The [US] Treasury Department today renewed its call on the International Monetary Fund and World Bank to develop a list of best practices for sovereign wealth funds (SWFs), which he said would help ensure investments controlled by foreign governments are transparent and made for economic rather than political reasons.”

Reuters UK reports that, “Casting light on the operations of secretive government wealth funds would help stem rising protectionism and ease fears these countries could come to have undue influence over global financial markets, an International Monetary Fund official said on Wednesday.”

The Financial Times reports (subscription required) that, “The International Monetary Fund is to call on sovereign wealth funds to volunteer for more comprehensive disclosure to ease concerns in developed markets about the purchasing power of these increasingly powerful players in the international financial system.”

The Gulf Times reports that, “The IMF has said foreign assets under sovereign management will aggregate $12tn by 2012 with emerging markets predominantly accumulating international assets worth about $900bn every year.”

Reuters reports that, “Simon Johnson, the IMF’s chief economist, said sovereign wealth funds may have played a stabilizing role in this summer’s financial market turmoil by stepping in to buy assets when other investors froze.”

Die Welt reports (German language) that rules for sovereign wealth funds will be discussed at upcoming IMF and G7 finance minister meetings in Washington, with the aim of finding ways to discourage protectionism.

The Bretton Woods Project reports Friday that, “The US is proposing yet another expansion of mission for the IMF: regulating sovereign wealth funds.”