Economists Gary Smith and John Nugée, state in a recent note : “Addressing the economic consequences of the pandemic and implementing a green energy agenda are issues an order of magnitude larger, and more global in their reach, than the world has seen in modern economic history.”
The scale of these challenges is enormous and urgent, they argue. It requires the mobilisation of the full fiscal and savings resources of every nation, including national foreign exchange (FX) reserves. While sovereign wealth funds (SWFs) are a source with about $8.5trn (€7.0trn) of assets, according to the Official Monetary and Financial Institutions Forum (OMFIF), a think tank, global FX reserves are about $14trn. That is equivalent to 20% of global output.