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Macroeconomic Stabilization Fund (FEM)

What is 'Macroeconomic Stabilization Fund - FEM'

A reserve fund established by the country of Venezuela. Also known as the "FEM," it was created at the behest of the IMF to stabilize the national cash flow generated from oil production. It receives all monies generated from oil production above a certain price per barrel and pays out the difference if the price falls below this level.

Explaining 'Macroeconomic Stabilization Fund - FEM'

The price per barrel above which revenue is diverted into the fund is based on the average price of oil over the past five years. Oil price fluctuations are hedged with future contracts on an as needed basis.


The fund is governed by the Board of the Central Bank of Venezuela.


Further Reading


Microenterprise lending to female entrepreneurs: sacrificing economic growth for poverty alleviation?
www.sciencedirect.com [PDF]
… capacity and difficulty of entry into the formal sector for women, macroeconomic dislocation and … microentrepreneurs are often seeking modest improvements in the stability and level of … because they are closely related to the commonly articulated goals of economic growth and …

Migrant female domestic workers: debating the economic, social and political impacts in SingaporeMigrant female domestic workers: debating the economic, social and political impacts in Singapore
journals.sagepub.com [PDF]
… capacity and difficulty of entry into the formal sector for women, macroeconomic dislocation and … microentrepreneurs are often seeking modest improvements in the stability and level of … because they are closely related to the commonly articulated goals of economic growth and …

A framework to update Hofstede's cultural value indices: economic dynamics and institutional stabilityA framework to update Hofstede's cultural value indices: economic dynamics and institutional stability
link.springer.com [PDF]
… capacity and difficulty of entry into the formal sector for women, macroeconomic dislocation and … microentrepreneurs are often seeking modest improvements in the stability and level of … because they are closely related to the commonly articulated goals of economic growth and …

Gendered poverty, migration and livelihood strategies of female porters in Accra, GhanaGendered poverty, migration and livelihood strategies of female porters in Accra, Ghana
www.tandfonline.com [PDF]
… capacity and difficulty of entry into the formal sector for women, macroeconomic dislocation and … microentrepreneurs are often seeking modest improvements in the stability and level of … because they are closely related to the commonly articulated goals of economic growth and …

How knowledge base factors change natural resource curse to economic growth?How knowledge base factors change natural resource curse to economic growth?
www.sciencedirect.com [PDF]
… capacity and difficulty of entry into the formal sector for women, macroeconomic dislocation and … microentrepreneurs are often seeking modest improvements in the stability and level of … because they are closely related to the commonly articulated goals of economic growth and …

The syndrome of economic decline and the quest for changeThe syndrome of economic decline and the quest for change
books.google.com [PDF]
… capacity and difficulty of entry into the formal sector for women, macroeconomic dislocation and … microentrepreneurs are often seeking modest improvements in the stability and level of … because they are closely related to the commonly articulated goals of economic growth and …



Q&A About Macroeconomic Stabilization Fund (FEM)


How much revenue is paid out to Venezuela if prices fall below this level?

If prices fall below this level, then Venezuela will pay out less than they would have otherwise received in revenue from oil sales.

How much revenue is diverted into the fund if oil prices are above a certain level?

Revenue is diverted into the fund if prices are above a certain level based on average price of oil over past five years.

What is the name of the fund?

The Macroeconomic Stabilization Fund.

What does the fund do with money from oil production above a certain price per barrel?

It diverts that revenue into the fund.

Who created the fund?

The IMF created it.