BD approved Sovereign Wealth Fund of $10 Billion

[bd_4_ever]

Land my friend is generally very il-liquid asset. You can gain a lot with land in BD but its price may fall very sharply like gold or silver. On contrary cash is sth u can always change into other form very quickly!
Cash is King but Dolla is $Bling$Bling$.

Its only il-liquid if you want the guarantee to have cash available at the earliest during any crisis.

My personal investment view is long-term and the priority is to have backup against my money losing value. 1 lakh today will not be of same worth as 1 lakh a year later. That is the nature of currency. If you look at it from an intrinsic value point of view, it hasnt got any.

Gold and silver are the same. Throughout history, it has been a safe fail-back for currencies losing their value. There is a reason why Islam has always advocated for it.

 

[rome333]

Its only il-liquid if you want the guarantee to have cash available at the earliest during any crisis.

My personal investment view is long-term and the priority is to have backup against my money losing value. 1 lakh today will not be of same worth as 1 lakh a year later. That i the nature of currency. If you look at it from an intrinsic value point of view, it hasnt got any.

Gold and silver are the same. Throughout history, it has been a safe fail-back for currencies losing their value. There is a reason why Islam has always advocated for it.

Only if you have excess cash to spare and you dont need liquidity. History showed why mankind disowned hard currency. Its a failed concept since the invent of interest. If you have a limited amount of gold and lend someone, then how someone gonna pay back with interest in gold? In wider sense its gonna bring depression and slavery. If you are ok with interest system then I say Greed is Good.

 

[bd_4_ever]

Only if you have excess cash to spare and you dont need liquidity. History showed why mankind disowned hard currency. Its a failed concept since the invent of interest. If you have a limited amount of gold and lend someone, then how someone gonna pay back with interest in gold? In wider sense its gonna bring depression and slavery. If you are ok with interest system then I say Greed is Good.

That is the thing. I am not okay with interest system and hence dont go that route.

 

[rome333]

That is the thing. I am not okay with interest system and hence dont go that route.

Thats why my friend in Quran and even in Bible Interest is FORBIDDEN.

 

[Bilal9]

Euro is doomed. After French and German election right wing will most probably form govt and cancel Euro project. JPY and CNY are subject to future conflicts between them. Gold and Silver! Seriously. They are good until to some degree of heat. But in a World War senerio who gonna carry gold on their back. Be a Keynesian. In The Long Run We All Are Dead.

Well Thanks for the cheery outlook there.

 

[Shotgunner51]

He said every year the fund will add $2 billion from the country’s foreign exchange reserves, which currently sits above $32 billion.

Bangladesh Bank just updated NSDP on Jan 23, check

https://www.bb.org.bd/econdata/bb_nsdp.php
https://www.bb.org.bd/econdata/nsdp/esd_1.xlsx
https://www.bb.org.bd/econdata/nsdp/esd_2.xlsx
​

Reserve assets is Taka 2,475.315 billion (or $31.45 billion), composition is 1.9% monetary gold, 4.3% SDR, 0.6% reserve position in IMF, 93.2% others (foreign exchange, bond securities, etc). Reserve assets constitutes almost 80% of total external assets.

Backed by very strong secondary income (e.g. remittance), current account is capable of sustaining surplus, running at approx Taka 235.432 billion/year (or $2.98 billion/year) now. Continual expansion of merchandise exports will also help.

I believe Bangladesh Bank has good plan on managing external liabilities (inbound FDI, debts, etc), so they are confident with liquidity provided by existing reserve assets level, and mulls more aggressive Sovereign Wealth Fund (SWF). Judging from the run rate of current account surplus, adding $2 billion annually for next 5 years to SWF is practical.

Good luck BD!

 

[Zabaniyah]

So they are finally starting to open up and make some money.

I wonder if this is a good idea......Dollar might lose value in the future. It's better to buy Gold or Silver..........It could also be a good idea to buy several currencies instead of USD only. Yuan and Euro could be good choice. But Chinese also lets Yuan's value to depreciate so it might not be a good idea to buy Yuan in huge amount.

It's always better to buy something substantial like Gold.

I do not know about the Yuan. But Euro tend to fluctuate a lot. Bad idea to invest much in them. Just as long as they are enough to pay for import bills denominated by Euro (which are a bit uncommon).

The USD so far is the most stable currency out there with the deepest and most liquid market. I suspect it will continue to dominate for a long time.

Gold will always be an attractive investment. That is why China had been investing in them so heavily.

 

[extra terrestrial]

A good move... But I hope they have correct predictions about future remittance inflow which has seen a big slump last year...

 

[Nilgiri]

future remittance inflow which has seen a big slump last year

Whats the reason behind that?

 

[TopCat]

Whats the reason behind that?

Mobile money transfer outside the banking channel.

 

[rome333]

Mobile money transfer outside the banking channel.

Hundi/Hawla as rates are much better. Still money comes into BD. So ecomomist and govt can shut up as this is more efficient. They better look for rich scambags rather than poor and middle class.