MACROECONOMIC STABILIZATION FUND - FEM
A reserve fund created by Venezuela to save the national economy from huge fluctuations of revenue, caused by price changes of the country’s main commodity. This was established as per advice of the International Monetary Fund. Also known as the Fund for Investment of Macroeconomic Stabilization or FEM, it aims to stabilize the cash flow generated from oil production. It receives all monies earned from oil production above a particular price per barrel and pays out the difference if the price falls below this level.
FEM is governed by the Board of the Central Bank of Venezuela.
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