Temporary investment of surplus funds of the African Development Bank

Abstract

In discussing investment policy for the African Development Bank it seems appropriate to emphasize that it should be both temporary and conservative in character. Temporary, because the main purpose of the Bank is to invest its funds in the development of member countries consequently any placing of surplus funds not needed for that purpose will be made only until such time as the funds are so required. Conservative, because it will be directed to conserving the Bank's resources until needed for its principal purpose. This does not mean that the Bank can afford to be indifferent as to whether such funds earn any return or to the rate of return which they may secure. In the earlier years of the Bank's existence at any rate, it may have to look to such earnings to defray the Whole or greater part of its administrative and other costs.