Azerbaijani Central Bank's strategic currency reserves up 2 percent for September
Azerbaijan, Baku, October 2 / Trend N. Ismayilova /
The Azerbaijani Central Bank's currency reserves hit $5 103,6 million late third quarter. It exceeds this index $102.4 million for previous month or 2 percent, the bank said on October 2.
As of September 1, currency reserves hit $5001,2 million.
"We forecast increase of this index up to $5.5 billion by late 2009, i.e. half of $1 billion spent during 2009 will be returned," chairman of the Central Bank's board, Elman Rustamov, said.
He said that bringing of reserves to the old level was earlier forecasted. But forecasts were reconsidered due to funds allocated to SOCAR by the Central Bank to the amount of 750 million manat.
The Central Bank expects for income worth $50 million from governing of its currency reserves in 2009.
Rustamov said that about $350 million of currency reserves are in foreign department. Presently, Treasury of the World Bank, UBS Swiss bank and U.S JP Morgan manage the Central Bank.
The Azerbaijani Central Bank has balanced currency composition of portfolio in 2008. Presently, 60 percent of currency reserves are in dollars but the rest 40 percent in Euro and pounds / sterling.
Portfolio of currency reserves is divided into 2 parts: investment and operational. So, most part of reserves is concentrated in U.S currency.
Investment part of portfolio constantly increases. Presently, 60 percent falls on their part. Operational part is mainly connected with service of domestic needs, foreign debt. Thus, its 90 percent is concentrated in dollars.
Share of Euro is rather significant in investment portfolio.
Investment portfolio consists of different tools. Currency reserves in this portfolio are placed in deposits and securities. But their part was passed to the foreign department.
Presently, the Azerbaijani State Oil Fund's currency portfolio was balanced in the following way: 50 percent of assets must be placed in dollars but 40 percent in Euro. The rest five percent must be placed in pounds /sterling and five percent - among these currencies or placed in other ones. This proportion can change during a quarter. As a result it must be balanced within these limits.
On October 2, the official exchange rate is 0.8035 manat to $1.