Management of AIIB’s Financial Resources
Liquidity and Investment Management
AIIB's ALM policy requires that the operational liquidity portfolio should cover at least 40% of net cash requirements for the upcoming 36 months and 100% of net cash requirements for any upcoming 12-month period. This is to ensure AIIB is able to continue disbursing new loans and fulfill all its payment obligations for at least one year ahead, without additional new borrowing via the capital markets.
At June 30, 2018, AIIB’s total liquidity reached USD11.772 billion, of which USD8.50 billion (72% of the total) was held in bank deposits and short-term money market instruments.
The remaining USD3.277 billion (17% of total assets) is liquidity over and about that which is required for operational liquidity and is currently managed externally. These funds are invested in short-term cash securities.