Norway's $1tn Government Pension Fund has stunned experts by advising its government to concentrate all debt holdings on the dollar, euro and sterling, cutting out the likes of China, Australia and Japan. The move is a sign that Norway may be moving away from relying heavily on oil revenues for much needed budget savings, as it struggles with record levels of public debt. While the fund has not revealed its exact reasons for choosing the three Western currencies, it is thought Japan's growing economy and fears of a crisis in the government bond market prompted the move.
Norway's $1tn Government Pension Fund has stunned experts by advising its government to concentrate all debt holdings on the dollar, euro and sterling, cutting out the likes of China, Australia and Japan. The fund has also ramped up its acquisitions of London property, most recently with the £112m ($145m) purchase of Air Street in Soho. While the fund has not revealed its exact reasons for choosing the three Western currencies, it is thought Japan's growing economy and fears of a crisis in the government bond market prompted the move.