Nigeria has come a long way from 1999. It paid off all of its foreign debt and accumulated huge and steadily growing foreign exchange resserves. In the past years the government has taken quite numerous steps to redress the disastruous macro-economoic picture of the country which had been the heritage of the horror years of Abacha and Co; the most prominent has been the complete overhaul of the banking sector, in my eyes. Nigerian banks no longer need to hide themselves nowadays and are growing into their role of becoming Africa´s top financial institutions.

But there are still many annyoing asapect that occupy my mind like what is the country doing with all the liquidity now? just accumulating it mindlessly on the Central Bank is hugely annoying. Nigeria together with Algeria sit on huge and steeply rising foreign exchange reserves, by far the biggest in entire Africa....but what are they doing with all the extra surplus???

Can´t some of the cash be channeled into more lucrative forms of investment like the creation of state funds? The art of having cash is to make more out of it! Although the oil price will most likely continue to stay high for the coming years or even the next decade (majority of analists are aware of it), the bonanza won´t be for eternity. So those oil-rich countries have to invest their cash now to be prepared for the worst in the future. So can´t other ressource-rich countries like Norway, Brunei, Malaysia or some Arab Gulf countries like the UAE or Kuwait be our points of reference here?

The UAE is sitting on a state fund that has reached gigantic proportions, it has grown to close to $900 BILLION over the pats couple of decades, Noway´s has reached $300 Billion. All these countries cleverly canalized their money into more lucrative forms of investment instead of amassing all the cash on the Central Bank.

So what is being done? What are your suggestions?

Nigeria should look to those countries!

ECONOMY: Norway´s Petroleum State Fund

Norway is one of the world's richest countries in per capita terms. It has an important stake in promoting a liberal environment for foreign trade. Its large shipping fleet is one of the most modern among maritime nations. Metals, pulp and paper products, chemicals, shipbuilding, and fishing are the most significant traditional industries.

Norway's emergence as a major oil and gas producer in the mid-1970s transformed the economy. Large sums of investment capital poured into the offshore oil sector, leading to greater increases in Norwegian production costs and wages than in the rest of Western Europe up to the time of the global recovery of the mid-1980s. The influx of oil revenue also permitted Norway to expand an already extensive social welfare system. Norway has established a state petroleum fund that is expected to exceed $387 billion by the end of December 2007. The fund is primarily designed to help finance government programs once oil and gas resources become depleted. Norway is currently enjoying large foreign trade surpluses thanks to high oil prices. Unemployment remains low (3%- range), and the prospects for economic growth are encouraging thanks to the government's expansionary fiscal policy and economic recovery in the United States and Europe. As yet, the country does not have a significant industrial or manufacturing base and, in banking and financial services, the country is in the process of liberalizing and consolidating the industry. Norway's restricted labor market has limited the country's ability for mainland growth, although growth in the service sector has been stronger than in manufacturing. Labor costs have increased at a rate higher than those in its major trade rivals, causing a continued loss in Norway's competitive advantage. The Organization for Economic Cooperation and Development (OECD) has applauded Norway's strong economic outlook, with high growth expected to continue.

Norway voted against joining the European Union (EU) in a 1994 referendum. With the exception of the agricultural and fisheries sectors, however, Norway enjoys free trade with the EU under the framework of the European Economic Area. This agreement aims to apply the four freedoms of the EU's internal market (goods, persons, services, and capital) to Norway. As a result, Norway normally adopts and implements most EU directives. The present government has agreed not to open the question of full membership in the EU during the 2005-2009 legislative term. Norwegian monetary policy is aimed at maintaining a stable exchange rate for the krone against European currencies, of which the euro is a key operating parameter. Norway is not a member of the EU's Economic and Monetary Union and does not have a fixed exchange rate. Its principal trading partners are in the EU; the United States ranks sixth.

PS: The state fund is bigger than I read, it is about to reach $387 Billion at the end of this year.



The brave new world of state capitalism

By Martin Wolf

Published: October 16 2007 19:55 | Last updated: October 16 2007 19:55

Ferguson illustration

Globalisation was supposed to mean the worldwide triumph of the market economy. Yet some of the most influential players are turning out to be states, not private actors. States play a dominant role in ownership and production of raw materials, notably oil and gas. Now states are also emerging as owners of wealth. This is creating widespread concern. Does that narrow focus make sense? The broad answer is No.


Fevered attention is currently focused on so-called “sovereign wealth funds”. As Standard Chartered shows in an intriguing analysis, carried out with input from Oxford Analytica*, these are not a new phenomenon: the oldest dates back to 1953. But today there are more funds, with far more money at their disposal than before. In all, they control some $2,200bn, with $2,100bn in the top 20 funds. The seven biggest belong (in order of estimated size) to Abu Dhabi ($625bn), Norway ($322bn), Singapore – GIC ($215bn), Kuwait ($213bn), China ($200bn), Russia ($128bn) and Singapore – Temasek ($108bn).

By definition, these funds exist because a country has a surplus of savings over investment that ends up in the hands of the government. In practice, this has happened for two reasons: ownership of commodity wealth (particularly oil and natural gas), and what amounts to forced savings from an export-oriented manufacturing economy, as in the cases of China and Singapore.

Where a country’s natural resource wealth is large relative to the size of its population, the fund should be seen as a different way to hold that wealth, for the long term. In the case of Russia, however, the aim is stabilisation, which implies a shorter-term horizon. China’s fund is a consequence of its massive reserve accumulations, which exceed the sums it can conceivably need for insurance. This has allowed the transfer of $200bn (maybe much more in future) to a new fund – the China Investment Corporation – with the goal of achieving a higher return than the miserably low one on the country’s official reserves.

How large are these funds? They account for approximately 1.3 per cent of the world’s stock of financial assets (stocks, bonds and bank deposits). But the total of $2,200bn is, notes the Standard Chartered report, bigger than the sums invested in hedge funds (at $1,000bn-$1,500bn) and private equity funds (at $700bn-$1,100bn). Nevertheless, it is dwarfed by the $53,000bn controlled by mature institutional investors (see chart).

Sovereign Wealth Funds

The sovereign funds remain far smaller than official foreign currency reserves of the countries mentioned above (approximately $5,600bn). But the expectation is that these funds will grow rapidly, possibly to exceed official currency reserves in a number of years. If recent growth were to continue, the total value would reach $13,000bn over the next decade.

*State Capitalism: The Rise of Sovereign Wealth Funds, October 15 2007[/QUOTE]

http://www.spiegel.de/img/0,1020,986306,00.jpg

Nigeria can invest in other countries, buy companies or stocks etc. VAE have invested billions in the US and they are still buing companies in the world. Emaar is has become one of the biggest property companies. They have project in a lot of countries. That is te reason why they make a lot of money...

Africa in an upcoming economy. Nigeria has billions of dollar, maybe they can buy other companies, banks, airports, invest tourism projects abroad, property etc in Africa.

I hate to bring this up, but there is a chance that some of that money could be landing in swiss bank accounts right now.

Oh please, Dantexavier, haven´t you followed the news lately? When were your last updates 1984?

Oh please, Dantexavier, haven´t you followed the news lately? When were your last updates 1984?

Exactly, tell this guy, Nigeria isn't that corrupt anymore. Live with it!

I hate to bring this up, but there is a chance that some of that money could be landing in swiss bank accounts right now.

You didn't get the memo? We're not in the military era anymore, those days are over.

Nigeria has improved in the corruption index that is something we all need to realize. But that doesn't mean it isn't incredibly corrupt, being the 10 corrupt nation instead of first does not equate to clear transparent transactions. This doesn't go to say that Nigeria's exchange reserves are in some swiss bank account.

Nigeria has improved in the corruption index that is something we all need to realize. But that doesn't mean it isn't incredibly corrupt, being the 10 corrupt nation instead of first does not equate to clear transparent transactions. This doesn't go to say that Nigeria's exchange reserves are in some swiss bank account.
the corruption index only tracks perception, not reality

Nigeria can invest in other countries, buy companies or stocks etc. VAE have invested billions in the US and they are still buing companies in the world. Emaar is has become one of the biggest property companies. They have project in a lot of countries. That is te reason why they make a lot of money...

Africa in an upcoming economy. Nigeria has billions of dollar, maybe they can buy other companies, banks, airports, invest tourism projects abroad, property etc in Africa.

Probably the best idea. Investing in domestic and international companies, stocks, and other assets, while keeping a portion of the reserves as a "rainy day fund" is a win-win situation, IMO.

According to Wikipedia, Nigeria has $47 billion in foreign exchange reserves. That is very respectable, and will obviously increase in the future due to high oil prices. That is very optimistic news. Nigeria may have more money in reserves than the US in a couple of years. I hope for the best.

the corruption index only tracks perception, not reality

Do you really think that would alter significantly the reality of things? I don't thinkso. It's more than soley "perception".

Again Mr Alex Roney with his endless lectures!

Nigeria is now at position 147 out of 177 countries! It is not heaven on earth but no longer the worst in Africa or the world, it is steadily moving upward and no longer among the ten worst countries! We all know that there is still a very very long way to go.

Transparency International ratings 2007

150 Aserbaidschan 2,1 8 0,4 1.3 - 2.5 1.9 - 2.3
150 Belarus 2,1 5 0,7 1.3 - 3.2 1.7 - 2.6
150 Congo-Brazzaville 2,1 6 0,2 1.9 - 2.4 2.0 - 2.2
150 Ivory Coast 2,1 6 0,7 1.6 - 3.4 1.7 - 2.6
150 Ecuador 2,1 5 0,3 1.9 - 2.5 2.0 - 2.3
150 Kasachstan 2,1 6 0,6 1.3 - 3.0 1.7 - 2.5
150 Kenya 2,1 8 0,4 1.4 - 2.6 1.9 - 2.3
150 Kirgisien 2,1 7 0,2 1.9 - 2.4 2.0 - 2.2
150 Liberia 2,1 4 0,5 1.7 - 2.9 1.8 - 2.4
150 Sierra Leone 2,1 5 0,2 2.0 - 2.4 2.0 - 2.2
150 Tadschikstan 2,1 8 0,4 1.5 - 2.7 1.9 - 2.3
150 Zimbabwe 2,1 8 0,5 1.5 - 3.1 1.8 - 2.4
162 Bangladesch 2,0 7 0,4 1.5 - 2.7 1.8 - 2.3
162 Cambodia 2,0 7 0,3 1.6 - 2.4 1.8 - 2.1
162 Central African Republic 2,0 5 0,3 1.7 - 2.5 1.8 -
162 Papua-Neuguinea 2,0 6 0,5 1.3 - 2.6 1.7 - 2.3
162 Turmenistan 2,0 5 0,4 1.7 - 2.7 1.8 - 2.3
162 Venezuela 2,0 7 0,2 1.9 - 2.3 1.9 - 2.1
168 DRC 1,9 6 0,3 1.6 - 2.4 1.8 - 2.1
168 Equatorial Guinea 1,9 4 0,1 1.7 - 2.0 1.7 - 2.0
168 Guinea 1,9 6 1,0 1.0 - 3.7 1.4 - 2.6
168 Laos 1,9 6 0,4 1.5 - 2.7 1.7 - 2.2
172 Afghanistan 1,8 4 0,4 1.3 - 2.2 1.4 - 2.0
172 Chad 1,8 7 0,1 1.6 - 2.0 1.7 - 1.9
172 Sudan 1,8 6 0,2 1.4 - 2.0 1.6 - 1.9
175 Tonga 1,7 3 0,2 1.5 - 2.0 1.5 - 1.8
175 Usbeksitan 1,7 7 0,2 1.5 - 2.0 1.6 - 1.9
177 Haiti 1,6 4 0,4 1.3 - 2.0 1.3 - 1.8
178 Irak 1,5 4 0,3 1.3 - 2.0 1.3 - 1.7
179 Myanmar 1,4 4 0,4 1.0 - 2.0 1.1 - 1.7
179 Somalia 1,4

For full list: http://www.transparency.de/Tabellarisches-Ranking.1084.0.html

Correction:

Again Mr Alex Roney with his endless lectures!

Nigeria is now at position 147 out of 177 countries! It is not heaven on earth but no longer the worst in Africa or the world, it is steadily moving upward and no longer among the ten worst countries! We all know that there is still a very very long way to go.

Transparency International ratings 2007

147 Nigeria 2,2 8 0,4 1.9 - 2.9 2.0 - 2.4
150 Aserbaidschan 2,1 8 0,4 1.3 - 2.5 1.9 - 2.3
150 Belarus 2,1 5 0,7 1.3 - 3.2 1.7 - 2.6
150 Congo-Brazzaville 2,1 6 0,2 1.9 - 2.4 2.0 - 2.2
150 Ivory Coast 2,1 6 0,7 1.6 - 3.4 1.7 - 2.6
150 Ecuador 2,1 5 0,3 1.9 - 2.5 2.0 - 2.3
150 Kasachstan 2,1 6 0,6 1.3 - 3.0 1.7 - 2.5
150 Kenya 2,1 8 0,4 1.4 - 2.6 1.9 - 2.3
150 Kirgisien 2,1 7 0,2 1.9 - 2.4 2.0 - 2.2
150 Liberia 2,1 4 0,5 1.7 - 2.9 1.8 - 2.4
150 Sierra Leone 2,1 5 0,2 2.0 - 2.4 2.0 - 2.2
150 Tadschikstan 2,1 8 0,4 1.5 - 2.7 1.9 - 2.3
150 Zimbabwe 2,1 8 0,5 1.5 - 3.1 1.8 - 2.4
162 Bangladesch 2,0 7 0,4 1.5 - 2.7 1.8 - 2.3
162 Cambodia 2,0 7 0,3 1.6 - 2.4 1.8 - 2.1
162 Central African Republic 2,0 5 0,3 1.7 - 2.5 1.8 -
162 Papua-Neuguinea 2,0 6 0,5 1.3 - 2.6 1.7 - 2.3
162 Turmenistan 2,0 5 0,4 1.7 - 2.7 1.8 - 2.3
162 Venezuela 2,0 7 0,2 1.9 - 2.3 1.9 - 2.1
168 DRC 1,9 6 0,3 1.6 - 2.4 1.8 - 2.1
168 Equatorial Guinea 1,9 4 0,1 1.7 - 2.0 1.7 - 2.0
168 Guinea 1,9 6 1,0 1.0 - 3.7 1.4 - 2.6
168 Laos 1,9 6 0,4 1.5 - 2.7 1.7 - 2.2
172 Afghanistan 1,8 4 0,4 1.3 - 2.2 1.4 - 2.0
172 Chad 1,8 7 0,1 1.6 - 2.0 1.7 - 1.9
172 Sudan 1,8 6 0,2 1.4 - 2.0 1.6 - 1.9
175 Tonga 1,7 3 0,2 1.5 - 2.0 1.5 - 1.8
175 Usbeksitan 1,7 7 0,2 1.5 - 2.0 1.6 - 1.9
177 Haiti 1,6 4 0,4 1.3 - 2.0 1.3 - 1.8
178 Irak 1,5 4 0,3 1.3 - 2.0 1.3 - 1.7
179 Myanmar 1,4 4 0,4 1.0 - 2.0 1.1 - 1.7
179 Somalia 1,4

For full list: http://www.transparency.de/Tabellarisches-Ranking.1084.0.html

According to Wikipedia, Nigeria has $47 billion in foreign exchange reserves. That is very respectable, and will obviously increase in the future due to high oil prices. That is very optimistic news. Nigeria may have more money in reserves than the US in a couple of years. I hope for the best.

Just a little correction:), foreign exchange resserves in Nigeria are standing at $49 bn and not at $47 bn, these were the figures for September.


Nigeria forex reserves hit high of $49 billion in Oct
Wed 31 Oct 2007, 11:53 GMT


LAGOS, Oct 31 (Reuters) - Nigeria's foreign reserves hit an all-time high of $48.92 billion on Oct 19, from $47.96 billion at the end of September, the central bank said on Wednesday.

The bank, which did not say how many months of import bills the current level can finance, said in a notice on its Web site the reserves could finance 22 months of imports in August when the figure was $45 billion.

Nigeria's foreign reserves have grown steadily in the last three years, buoyed by rising world oil prices and improved economic management by the government.

The ballooning reserves have significantly aided the rapid appreciation of Nigeria's currency, which traded at 121.15 per dollar on the interbank market on Tuesday.

Nigeria's reserves have also benefited from increased dollar inflows in foreign investment into African top oil producer's economy thanks to its attractive and competitive interest rates.

PS: The reseves would have even been higher if Nigeria had never experienced self-centred devilish militaries like S. Abacha, I. Babandiga or M. Buhari, Nigeria was a "basket case" in 1999 where absolutely nothing functioned any more! A lot has happened since then....but still a lot remains to be done.
If Nigeria wil manage to save $2-3 billion in foreign exchange resserves, this wouldn´t be too bad.

$2-3 bn a month, I forget to add this essential aspect.

Do you really think that would alter significantly the reality of things? I don't thinkso. It's more than soley "perception".

do you realize the index is called the corruption perception index?

do you realize the index is called the corruption perception index?

Yes I'm aware however does that not equate to the levels of corruption that nation has? Thats basically my point, I would say its quite representative.

@Matthias Sorry, your right but that doesn't mean we shouldn't question if theirs corruption. Being ranked 147 doesn't make you Finland so no need for others to get over sensetive in bringing the topic up.

@Matthias Sorry, your right but that doesn't mean we shouldn't question if theirs corruption. Being ranked 147 doesn't make you Finland so no need for others to get over sensetive in bringing the topic up

Alex show me where I said it, please!


That´s what I said:

"Nigeria is now at position 147 out of 177 countries! It is not heaven on earth but no longer the worst in Africa or the world, it is steadily moving upward and no longer among the ten worst countries! We all know that there is still a very very long way to go."

31 nations are ranked worse than us...I have counted them.

Alex show me where I said it, please!


That´s what I said:

"Nigeria is now at position 147 out of 177 countries! It is not heaven on earth but no longer the worst in Africa or the world, it is steadily moving upward and no longer among the ten worst countries! We all know that there is still a very very long way to go."

31 nations are ranked worse than us...I have counted them.

I wasn't talking about you, hence why I said "others".

I wasn't talking about you, hence why I said "others".

You addressed me, hence my reply!

Just a little correction:), foreign exchange resserves in Nigeria are standing at $49 bn and not at $47 bn, these were the figures for September.

Nice, even better. :cheers:

Oh please, Dantexavier, haven´t you followed the news lately? When were your last updates 1984?

You didn't get the memo? We're not in the military era anymore, those days are over.

Exactly, tell this guy, Nigeria isn't that corrupt anymore. Live with it!

....guys, I hate to break this to you, but 147 out of 177 countries isn't anything special. When I said what I said, I was not trying to make things up nor was I in anyway out of touch with reality- I was just pointing out what is still a very real concern in that country right now. That's all.

....guys, I hate to break this to you, but 147 out of 177 countries isn't anything special. When I said what I said, I was not trying to make things up now was I in anyway out of touch with reality- I was just pointing out what is still a very real concern in that country right now. That's all.

Not really, Nigerians are starting to move pass that way of thinking, we're more concerned about whether we should use the money or to save the money.

del

so why are u sooooo! concerned about nigeria, are u nigerian??!!,or do you have any special connection with her??, you seem to be so abrest of happenings in nigeria,any special connection??
WHY DONT YOU REMOVE THE LOG IN YOUR EYES FIRST, DANTE!!! :bash::okay::weird::goodnight

:| Whatever.

I've already finished putting my opinion out there anyway.

so why are u sooooo! concerned about nigeria, are u nigerian??!!,or do you have any special connection with her??, you seem to be so abrest of happenings in nigeria,any special connection??
WHY DONT YOU REMOVE THE LOG IN YOUR EYES FIRST, DANTE!!! :bash::okay::weird::goodnight

Do you have to be a Nigerian to contribute in this forum? Sorry I didnt get the memo. I think Matt started his topic with the best of intentions but again it was hijacked as usual. Sad.

so why are u sooooo! concerned about nigeria, are u nigerian??!!,or do you have any special connection with her??, you seem to be so abrest of happenings in nigeria,any special connection??
WHY DONT YOU REMOVE THE LOG IN YOUR EYES FIRST, DANTE!!! :bash::okay::weird::goodnight

Stop getting emotional and just debate.

Why does it seem like the Nigerians always start bitching at the smallest bit of criticism?

Get over yourselves, geesh

Finance Minister: Angola considering shifting some its rapidly rising foreign currency reserves from dollar to euro



http://img.iht.com/images/v3/logo_all.gif

Published: November 16, 2007

RIYADH, Saudi Arabia: Angola is seriously studying shifting some of the country's US$12 billion in foreign currency reserves to the euro, at the expense of the U.S. dollar, Finance Minister Jose Pedro de Morais said Friday.

The African nation is the second OPEC member in as many days to question the wisdom of holding the greenback in a high proportion against other currencies.

"We are seriously considering to diversify our reserves' portfolio to euros," de Morais told Dow Jones Newswires on the sidelines of an Organization of Petroleum Exporting Countries summit here.

Some 70 percent of the oil-rich West African nation's currency reserves are in dollars, he added.

The finance ministry, De Morais said, was doing studies to determine how much of its foreign exchange reserves might be moved out of euros. "It'll be some time before these are finished."

On Thursday, Iraqi Prime Minister Nouri al-Maliki's economic adviser Kamal al-Basri, was quoted as saying by Dow Jones Newswires that he and country's central bank were studying the need to diversify its US$23 billion in currency reserves, adding that though the dollar's weakness was "very frightening" it was probably a temporary phenomenon.

Angola's de Morais said he was seriously concerned about the anemic dollar, adding he would likely support any proposal to create an OPEC currency basket in which crude oil would be priced.

That idea isn't being formally considered by OPEC this week but some members, such a Venezuela, have said it should be examined.

"We would seriously consider this idea," de Morais said.

Angola, which became the 12th member of the OPEC oil cartel at the start of this year, was set to record its third straight year of budget surplus next year, he added.



PS: A very wise decison I wonder why Nigeria is not taking such moves!!!???..Diversification is always a good thing:cheers:

Nigeria is still a very corrupt country. But yes, the money should ne invested in shares etc like what the Arabs do.

I hate to bring this up, but there is a chance that some of that money could be landing in swiss bank accounts right now.

Are you still living in the past? Wake up and get yourself updated. Your countries will soon run out of money because your banks will soon no longer have stolen monies to freeze.

Again Mr Alex Roney with his endless lectures!

Nigeria is now at position 147 out of 177 countries! It is not heaven on earth but no longer the worst in Africa or the world, it is steadily moving upward and no longer among the ten worst countries! We all know that there is still a very very long way to go.

Transparency International ratings 2007



For full list: http://www.transparency.de/Tabellarisches-Ranking.1084.0.html

This is brilliant

Why does it seem like the Nigerians always start bitching at the smallest bit of criticism?

Get over yourselves, geesh

Because the truth is never being told about Nigeria. I bet you have never travelled out of your country.

Because the truth is never being told about Nigeria. I bet you have never travelled out of your country.

Then tell us the truth?

Because the truth is never being told about Nigeria. I bet you have never travelled out of your country.

Um. I've travelled outside of my country several times, in fact I'm leaving on the 16th of next month.

I'll get you a picture of the welcome sign there :lol:

Then tell us the truth?

Western Government and media conspiracy!!! That is the truth

Western Government and media conspiracy!!! That is the truth


:crazy2:

Western Government and media conspiracy!!! That is the truth

Isn't it always :|

Saudis plan gigantic sovereign wealth fund

http://us.ft.com/ftgateway/images/ftcom_logo.gif

By Henny Sender and David Wighton in New York and Sundeep Tucker in Hong Kong

Freitag Dez 21 2007 14:45

Saudi Arabia plans to establish a sovereign wealth fund that is expected to dwarf Abu Dhabi's $900bn and become the largest in the world.

The new fund will be a formidable rival for other government-owned investment funds in the Middle East and Asia, which are playing an increasingly active role in channelling capital to western companies, particularly financial companies hard hit by the US mortgage meltdown.

News of the Saudi plan comes as Temasek of Singapore is in "preliminary" talks with Merrill Lynch concerning a multibillion- dollar stake in the ailing investment bank, according to a person familiar with the matter.

Merrill and Temasek have been talking for a while about this, although there are no indications that a deal is imminent," the person said. Temasek was also approached as a possible investor in UBS (NYSE:UBS) and Morgan Stanley (AMEX:MWD) , although the investment banks later struck deals with Government of Singapore Investment Corp and China Investment Corp respectively, the person said.

These stakes have avoided a serious political backlash but potential investments from the Saudis are likely to be subject to greater scrutiny.

The effort is likely to be spearheaded by Saudi Arabia's Public Investment Fund, which has a mandate to invest only internally. Previously, the Saudis' oil wealth had gone partly to the kingdom's central bank, the Saudi Arabian Monetary Authority, and partly into the coffers of the ruling family.

While the balance sheet of SAMA is public information, bankers say the figures capture only a small percentage of the total wealth of the country. The myriad investment vehicles of the various members of the royal family have never been transparent.

Until now, SAMA's investment policy has been conservative and largely limited to investment in bonds, especially US Treasuries, and shares. That contrasts with the mandate of its peers in the Gulf, which is increasingly geared to higher returns for when oil runs out, by investing in alternative assets such as private equity and hedge funds.

That emphasis has lately yielded to a focus on buying major stakes in troubled financial firms on both sides of the Atlantic in the wake of the subprime mortgage meltdown.

In contrast to its neighbours, Saudi Arabia has expanded its spending and next year's budget includes ambitious infrastructure projects. King Abdullah, Saudi Arabia's ruler, is believed to be a key sponsor of the investment initiative.

People close to the situation said Merrill's strategy was being driven from New York, giving John Thain, who succeeded Stan O'Neal as chairman and chief executive this month, an early chance to stamp his mark on the bank.

However, Bill McDonough, a former president of the New York Federal Reserve, is also expected to play a key role in the talks. He is one of the 11 luminaries on Temasek's international advisory panel, which also includes David Bonderman, the founder of TPG, and Ratan Tata, the Indian industrialist.

Mr McDonough is also an influential figure at Merrill Lynch, having joined the bank last year as vice-chairman and special adviser to the chairman. (

In October Merrill announced $8.4bn of writedowns on mortgage-related investments and corporate loans, and the departure of Stan O'Neal, its long-serving chief executive.

Some analysts predict that Merrill will announce an additional $8bn writedown when it unveils its fourth-quarter results in mid-January.

The US bank's stock price has nearly halved this year, cutting its market capitalisation to about $47bn. Dealmakers believe that Merrill would be comfortable with Temasek taking a stake of around 10 per cent, should a deal materialise.

Merrill Lynch and Temasek declined to comment on Friday.

Morgan Stanley announced this week that it is to receive a $5bn capital injection from China Investment Corporation, having disclosed a total writedown in the fourth quarter of $9.4bn after a disastrous subprime bet.

Last week UBS took nearly $10bn from the Government of Singapore Investment Corp, a sister sovereign wealth fund of Temasek, while Citigroup received $7.5bn last month from the Abu Dhabi Investment Authority.

The deals have underlined the growing importance of sovereign wealth funds in the Middle East, and their increasingly bold moves to take advantage of the need for capital among western institutions.

The three deals have yet to be endorsed or scrutinised by shareholders of the investment banks. The Financial Times reported on Friday that UBS is facing a shareholder revolt over its planned re-capitalisation deal with GIC and a mystery investor based in Saudi Arabia.


PS: If the Saudis launch that fund which is said to dwarf the state fund of the UAE that amounts to $900 Billion already (!!!), Saudi´s will most likely be in the trillions of US dollars. Amaaazing!!! They could buy off entire European countries like France, Italy or Germany. I wish Nigeria could get more aggressive!!!

what do you mean buy off entire countries like germany or france? one year's GDP is NOT equal to total funds stashed away in SWF.

I'll tell you what Nigeria is doing with it's Foreign Reserves. A portion of it is going to some infrastructure, such as roads, IPPs etc (Several Billion dollars), a portion is been used for projects, such as Tinapa, Other Free Trade Zones, and other grandiose schemes that are yet to be completed. (Around 10 Billion dollars). Most of the money that has been spent, is yet to be seen as fruitful as a lot of construction is still undergoing, a portion of the money is budgeted for the state Governments, however this is smaller than most people would expect. The rest of the money is not being spent. Along with the Windfall budgets. There is still the issue surrounding corruption in the state Government, but with increased transpaency, most of these launderings or misappropriations of Government funds are located.

Corruption in Nigeria, is not half as bad as it use to be, and the Nation is moving forward. What we are witnessing with the Nigeria Government, is a failure of initiatives, investments etc to bear fruit or progress as efficiently as they should , due to combined factors that act as one giant barrier. Construction work, is usually slow, due to security and funding. The economy is not growing as fast due to infrastructure being incapable of supporting the economy, but all these factors are been eliminated, and with time the economy will boom.


What is Nigeria's GDP growth? What is Nigeria's GDP per Capita growth? What percentage of Africa's GDP does Nigeria account for? What is the state of investments and business Transparency in Nigeria? How corrupt is Nigeria, when practically every government figure that is under speculation is being prosecuted.

Even with all of these problems, Nigeria is still one of the most progressive developing countries at present. And things aren't even what they should be. You cannot compare the situation of Nigeria today with Arabian economies. Look at the investments in Nigeria and tell me that Nigeria is not gearing towards being a Powerhouse like Saudi Arabia.


All I can say is lol.

what do you mean buy off entire countries like germany or france? one year's GDP is NOT equal to total funds stashed away in SWF.

It was said in the newpapers that if China and Russia invested all their foreign exchange resserves, they could easily buy off all of the companies listed in German stock exchange. So tides are certainly shifting (Europe is losing strength and power and is no longer as "untouchable" as it still wishes to be, relatively seen) and the best is that all has just begun!:banana:

I am just happy if more and more countries are rising to the surface and show their teeth instead of a world that is incessantly dominated and regulated by five mighty economic capitalist powers (USA, Japan, Germany, France and the UK) which occupied an eternally unchallenged position for almost four decades after the end of World II (new powers are rising like Brazil, China, India, Gulf Arab States, Mexico, Malaysia, South Korea, Singapore, Australia, Egypt, Nigeria, Indonesia etc.)...Today China and India have more billionaires in US Dollars than it is the case for the richest and mightiest Western European countries.

Our Foreign exchange reserves have risen to 52.4 Billion :P

Our Foreign exchange reserves have risen to 52.4 Billion :P

Article , please!

Lol, Im on it!!

Nigeria’s external reserves passes $52bn

Nigeria’s gross reserves have hit a high of $52.4-billion, the Central Bank of Nigeria (CBN) said yesterday.

The reserves at about $3-billion as at 1999, according to the apex bank, have been on a steady rise; increasing to $46-billion as at December 2006 then to $49.96-billion in November 2007.

The CBN said the rise was informed by some steps it took to ensure the prudent management of the reserves.

It would be recalled that the CBN had given approval to some 17 local banks together with some foreign institutions to manage a part of the reserves

The apex bank governor, Chukwuma Soludo, had earlier in the year expressed commitment to ensure the reserves hit $50-billion.

The increase in the reserves could also be attributed to the rising prices of crude oil in the international market with the average price of Nigeria’s reference crude known as the Bonny Light soaring to $92.8 per barrel as at end of last week.

In its weekly summary of economic indicators for December 14 released yesterday in Abuja, the CBN noted that the Nigeria’s average volume of crude oil output stood at 2.17-million barrels per day (mbpd) as at end-November 2007.

This also indicates a rise from 2.15 mbpd level recorded mid-year.

The CBN reports that the naira has continued to appreciate, exchanging for N116.30 against the dollar as at last week compared to N116.46 the previous week and N117.18 November ending.

Latest inflation figures (year-on-year) in the countryrecorded end-October was 4.6 percent contrary to 4.1 percent as at end-September.

Currency in circulation rose to N868.56-billion as at December 13 against N812.49-billion a week earlier.

The report states that average interest on savings account of domestic banks decreased from 3.39 percent as at December 7 to 3.15 percent last week.

However, the average prime lending and maximum lending rates of banks remained unchanged at 16.50 percent and 18.21 percent respectively.

http://businessdayonline.com/National/1691.html

Thanks Nixoderm!:)