The Fund will be managed through the Stabilisation and Development Funds, and is expected to contribute to macroeconomic stability and provide ongoing funding to the Government budget. It will be managed on-shore, with funds invested off-shore and spent on-shore. This will minimise large foreign exchange inflows and reduce upward pressure on the exchange rate, thereby mitigating the effect of Dutch Disease.
An important reason for this lack of applications is the existence of national large exposure limits on intragroup exposures in several European countries. These limits prevent institutions in these countries from transferring liquidity within the group in a flexible manner and thus represent practical obstacles to the use of liquidity waivers.