| Bangladesh plans to form a sovereign wealth fund with its foreign currency reserves to invest in infrastructure, the lack of which is turning out to be the main barrier to getting out of the 6-percent economic growth trap. A sovereign wealth fund (SWF) is a pool of money derived from a country's reserves, set aside for investment purposes that will benefit the country's economy and citizens.
The initial size of the fund would be $1-$2 billion, according to Bangladesh Bank Governor Atiur Rahman. At present, the central bank has foreign exchange reserves of more than $25 billion, and by the end of the year will cross the $26-billion mark. The central bank does not keep the reserves idle: it invests in various lucrative areas, so much that a big chunk of its profits come from them...............................................Full Article: Source
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