The Revenue Equalization Reserve Fund (RERF) is the

sovereign wealth fund A sovereign wealth fund (SWF), or sovereign investment fund, is a state-owned investment fund that invests in real and financial assets such as stocks, Bond (finance), bonds, real estate, precious metals, or in alternative investments such as ...

of the

Pacific The Pacific Ocean is the largest and deepest of Earth's five oceanic divisions. It extends from the Arctic Ocean in the north to the Southern Ocean, or, depending on the definition, to Antarctica in the south, and is bounded by the cont ...

island republic of

Kiribati Kiribati, officially the Republic of Kiribati, is an island country in the Micronesia subregion of Oceania in the central Pacific Ocean. Its permanent population is over 119,000 as of the 2020 census, and more than half live on Tarawa. The st ...

. The RERF was created in 1956 to act as a store of wealth for the country's earnings from

phosphate Phosphates are the naturally occurring form of the element phosphorus. In chemistry, a phosphate is an anion, salt, functional group or ester derived from a phosphoric acid. It most commonly means orthophosphate, a derivative of orthop ...

mining, which at one time accounted for 50% of government revenue. In 2009 the RERF was valued at A$570.5 million. The RERF assets declined from A$637 million (420 percent of GDP) in 2007 to A$570.5 million (350 percent of GDP) in 2009. As the result of the

2008 financial crisis The 2008 financial crisis, also known as the global financial crisis (GFC), was a major worldwide financial crisis centered in the United States. The causes of the 2008 crisis included excessive speculation on housing values by both homeowners ...

, the RERF was exposed to failed Icelandic banks, and drawdowns were made by the government of Kiribati to finance budgetary shortfalls. In 2018, it is set to reach 1 billion of A$. In 2019, the closing market value of the RERF was A$1,153.4 million. In 2021, the closing market value was $1.352 billion and in 2024 it reached $1.523 billion.

References

External links

Kiribati Ministry of Finance
Sovereign wealth funds Economy of Kiribati 1956 establishments in the Gilbert and Ellice Islands {{Kiribati-stub

See also

References

External links