BD approved Sovereign Wealth Fund of $10 Billion

[rome333]

Bangladesh is about to create a Sovereign Wealth Fund of $10 billion. BD will start with $2 billion and add $2 billion annually for 5 years. Once relevant laws are in place, BD will issue bonds to buy $ from its reserve. Fund from SWF will be used for its own projects mainly but provision will be kept for other Gov2Gov projects abroad. It will be a huge step for BD in international arena and will surely enhance Brand BANGLADESH.

 

[TopCat]

Bangladedh should make sure to invest only stable and democratic countries.

 

[rome333]

Once BD - a Bottomless Basket
Now BD - a Basket Full of $$$$

 

[Mage]

BD will issue bonds to buy $ from its reserve.

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.

Now BD - a Basket Full of $$$$

Too early to brag specially when we're so poor.

 

[Shotgunner51]

Good news! BD will be the first nation in the region to setup a SWF, it means central bank has decided that they have accumulated reserves (which stood at $31.75 billion on 2016 December 14, enough to honour 8 months' import bills) in excess of needs for liquidity or exchange rate management, and now through SWF some reserves can be diversified into assets other than highly short-term liquid assets. I expect BD to continue improve current account, allowing SWF to build up.

I have posted a thread on 2016 Dec 16: https://defence.pk/threads/govt-mulls-5b-sovereign-wealth-fund.466926/#post-9029828

 

[rome333]

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 that good to buy Yuan in huge amount.

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

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.

 

[Michael Corleone]

Once BD - a Bottomless Basket
Now BD - a Basket Full of $$$$

Amen to that.

 

[Mage]

But in a World War senerio who gonna carry gold on their back. Be a Keynesian. In The Long Run We All Are Dead.

USA sold weapons for Gold to the allied power during WW1 before joining the war themselves.

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.

You're right. It's hard to put faith in any currency. I mentioned Euro because they have fared good in the last decade. But of course the common currency heavily ddepends on the Function of EU and EU isn't looking very good.

Gold and Silver! Seriously.

What would be better? Currencies are good until they lose value. I believe it's time we start building a gold and Silver reserve. Even during a war you(govts) can buy things with gold. I don't think any party would reject gold as payment.

 

[rome333]

During a war type senerio, it is down to your own resourses u posess. Look at Hitlar as Germany had a huge stockpile of gold and was of no use. After war german gold ended in private hands. eg Hitlar was running out of gas so it invaded USSR.
Look at Abraham Linkon as he issued his own greenback backed by no gold or silver.
For now USD is the best bet regaedless.

 

[Mage]

During a war type senerio, it is down to your own resourses u posess. Look at Hitlar as Germany had a huge stockpile of gold and was of no use. After war german gold ended in private hands. eg Hitlar was running out of gas so it invaded USSR.
Look at Abraham Linkon as he issued his own greenback backed by no gold or silver.
For now USD is the best bet regaedless.

A world war type scenario is very unlikely these days with so many nuke possessing countries. Also it's best for us not to engage in any conflict.

I'm not really confident that USD will fare well in the next decades. Chinese economy getting bigger and will soon surpass US. They would want to make their currency stronger too. And if other countries starts trading hugely in currencies other than USD(which I see happening in the future ), USD will surely lose value.

That's why I think Gold and Silvers are the thing we should look to buy. They are less likely to devalue.

 

[Russell]

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.

The US has been working for a long time to devalue/destroy the Euro/EU/EuroZone - That battle continues unabated and the Euro will in the end fall.

$$$ is still the go to currency and will be in the foreseeable future.

 

[Hyde]

That's a great news. Congratulations to Bangladesh

I hope it grows and outshines everyone in the subcontinent

 

[bluesky]

What would be better? Currencies are good until they lose value. I believe it's time we start building a gold and Silver reserve. Even during a war you(govts) can buy things with gold. I don't think any party would reject gold as payment.

You are correct. Note that Gold and silver are already a part of BD foreign exchange reserves. However, no country keeps this reserve only in one single currency such as dollar. Read the following excerpt:

Bangladesh Foreign Exchange Reserves:
In Bangladesh, Foreign Exchange Reserves are the foreign assets held or controlled by the country central bank. The reserves are made of gold or a specific currency. They can also be special drawing rights and marketable securities denominated in foreign currencies like treasury bills, government bonds, corporate bonds and equities and foreign currency loans.

 

[H!TchHiker]

Good news for Bangladesh..

 

[Mage]

The US has been working for a long time to devalue/destroy the Euro/EU/EuroZone - That battle continues unabated and the Euro will in the end fall.

$$$ is still the go to currency and will be in the foreseeable future.

But what's wrong if we start building a gold or silver reserve? It is possible for USA to devalue USD so they can pay back their debt cheaply.

Note that Gold and silver are already a part of BD foreign exchange reserves.

That's of insignificant amount.