Azerbaijan, Baku, 14 November / Trend corr. N.Ismayilova/ Monetary reserves of the National Bank of Azerbaijan (NBA) dropped by more than 3% within one and half month, the NBA said.
Reduction of the NBA's reserves has been observed since October 2008.
On 30 September monetary reserves amounted to $5438.6mln and feel by 2.3% ($122.6mln), amounting to $5,316mln on 31 October. On 11 November amount of monetary reserves fell more than by 0.3%, making up $5298.7mln, as compared to the end of October.
On 12 November amount of reserves dropped by 0.5%, making up $5272.5mln, as compared to 11 November.
Date |
mln USD |
1 Jan 2007 |
1967.3 |
31 Jan 2008 |
3928.5 |
31 May 2008 |
4323.4 |
30 Jun 2008 |
5225.2 |
31 Jul 2008 |
5223.7 |
30 Aug 2008 |
5338.2 |
30 Sept 2008 |
5438.6 |
31 Oct 2008 |
5316.0 |
11 Nov 2008 |
5298.7 |
12 Nov 2008 |
5272.5 |
Reduction of the NBA's monetary reserves can be explained with great amount of investment, which the NBA realizes to regulate exchange rate policy in the country. On the other hand, the NBA realizes payments on loans of the International Monetary Fund from through monetary reserves. The world financial crisis influenced on reduction of profitability of monetary reserves management and this fact may be one of reasons of their reduction.
In October Chairman of the NBA Board Elman Rustamov did not exclude that the current situation would lead to reduction of profitability. It is connected to drop of interest rate in the world financial system, as well as to changes of the institutional structure of reserves.
"Main objective of management with reserves is profitability and their maintenance. Therefore, the NBA and the State Oil Fund of Azerbaijan Republic (SOFAR) shifted to the most conservative model of management with means maximum to provide their security," the NBA head said.
According to Rustamov, a conservative model designates that means are deposited in central banks of leading countries of the world and international financial institutions, which have a state status.
At present strategic monetary reserves of Azerbaijan exceed $18.2bln.
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