NORWAY – Higher oil prices have led Norges Bank to resume the purchase of foreign currency for the 915.3 billion-crown (111.2 billion-euros) Petroleum Fund from next month.

“As from July, Norges Bank will resume daily purchases of foreign currency on behalf of the Government Petroleum Fund,” the central bank said. It added that the daily foreign currency purchases for July have been set at 300 million crowns (35.5 million euros).

“The background is that the rise in the oil price has increased the need for allocations to the Government Petroleum Fund.” Norges Bank Investment Management runs the fund on behalf of the government.

The bank said that allocations to the fund would be covered partly by transfers of foreign exchange revenues from Norway’s own petroleum activities and partly by the bank’s currency purchases in the forex market.

Last month the fund reported a 2.9% in the first quarter, partly due to 22 billion crowns of new capital, a 26 billion-crown return in the capital markets and 22 billion crowns in currency effects.