Guyana’s Natural Resource Fund crossed the $1 trillion mark for the first time in the latest four-month reporting period, as a sharp increase in profit-oil receipts in August pushed the fund’s balance to $1.0197 trillion at the end of the month.
The latest figures from the Bank of Guyana show that the fund ended August with $1.0197 trillion, up from $907.1 billion at the end of July and $826.4 billion at the end of May.
The increase marks a significant turnaround over the four-month period, although the balance did not rise consistently each month.
At the beginning of May, the NRF held $856.0 billion. By the end of that month, the balance had fallen to $826.4 billion, largely reflecting a $104.25 billion transfer to the Consolidated Fund.
The fund then recovered in June, ending the month at $895.3 billion after receiving $91.2 billion in profit oil and recording $2.73 billion in investment income. A further $25.02 billion was transferred to the Consolidated Fund during June.
The pace of growth slowed in July.
The fund received $48.4 billion in profit oil and $23.2 billion in royalties, while $62.55 billion was transferred to the Consolidated Fund. Investment income contributed another $2.70 billion, leaving the NRF at $907.1 billion at month-end.
August, however, produced the strongest monthly increase of the four-month period.
The NRF received $161.86 billion in profit oil, more than three times the July profit-oil inflow. It also recorded a $20.85 million signature bonus, while investment income amounted to $2.85 billion.
At the same time, $52.125 billion was transferred from the NRF to the Consolidated Fund.
The result was a month-end balance of $1.0197 trillion, an increase of approximately $112.6 billion during August alone.
The most notable feature of the latest figures is the size of the August profit-oil receipt.
At $161.86 billion, August's profit-oil inflow was more than double the combined profit-oil receipts recorded in July and was the largest monthly profit-oil inflow among the four reports reviewed.
That does not, by itself, establish that Guyana produced or sold twice as much oil in August. The NRF monthly statements report the amounts entering the fund during the month; they do not provide a direct measure of monthly national oil production.
The Bank of Guyana also states that the figures in the monthly reports are presented on a cash basis of accounting, an important qualification when comparing individual months.
The August report puts the fund's US-dollar equivalent at about US$4.89 billion, using the report's stated exchange rate of G$208.50 to US$1. That compares with approximately US$4.35 billion at the end of July.
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