Asset manager BNP Paribas has suspended its Parvest World Agriculture fund due to controversy over food speculation.
BNP Paribas explains: “As part of our ongoing dialogue with NGOs, we have taken heed of the arguments expressed by Oxfam…Despite the absence of any clear-cut conclusions regarding the relationship between financial instruments and the volatility of food commodity prices, we decided to adopt the precautionary principle and suspend subscriptions to our Parvest World Agriculture fund, which is the most exposed to foodstuffs among our range of funds.”
BNP has eight remaining food speculation funds. Oxfam wants the bank to completely stop dealing in food speculation. They are also urging the government to clamp down on food and commodity speculation. At the European level, a chance exists to curb food speculation is currently under review through the MiFID directive.
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