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Consultations Take Place in Azerbaijan on Optimal Composition of Strategic Currency Reserves

Business Materials 13 November 2007 19:57 (UTC +04:00)

Azerbaijan, Baku /corr. Trend I.Khalilova / The Government of Azerbaijan began consultations to make an optimal decision regarding the currency composition of the strategic currency reserves, said the Chairman of the National Bank of Azerbaijan (NBA), Elman Rustamov, during discussions in Azerbaijani Parliament over 2008 Public budget.

According to him, currently the currency reserves have already reached $7bln. They have been placed in the assets of the State Oil Fund of Azerbaijan (SOFAZ) and reserves controlled by the BNA.

"Their functions are different because the funds of the SOFAZ are envisaged for increasing and revenues for the future generations, realizing strategic governmental projects. Due to it, the currency structure should be selected for the SOFAZ to ensure diversification against the risks," Rustamov said.

Some 90% of the NBA reserves are kept in USD because 85-90% of the operations in the world are carried out in USD.

If necessary (to pay foreign debts), the NBA will make payments from the reserves. Therefore, preference is given to the USD. Rustamov said that this issue is always the focus of attention of the Government, Rustamov said.

The gross volume of Azerbaijan's currency market makes up $10bln.

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