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Minister: Global financial situation affects decrease of incomes from management of foreign exchange reserves of Azerbaijan

Business Materials 7 July 2011 17:59
The situation in global financial markets has led to a decrease in interest incomes, which the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA) earned from the management of foreign exchange reserves.
Minister: Global financial situation affects decrease of incomes from management of foreign exchange reserves of Azerbaijan

Azerbaijan, Baku, July 7 /Trend, A.Akhundov/

The situation in global financial markets has led to a decrease in interest incomes, which the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA) earned from the management of foreign exchange reserves, Azerbaijani Finance Minister Samir Sharifov said on Thursday.

He said the general situation in the global financial markets is complicated, and it is burdened by the problems of sovereign debts.

"The problems that were at one time in the private sector, in the mortgage market could be solved through the mass emission of money by central banks of the most developed countries. But now the world's financial system lives in serious risk of sovereign default, and it is not about one, but several countries," said Sharifov.

He said all these have a rather negative effect on the financial situation in general. Therefore, in many developed countries, the economic, fiscal policy aims to ensure economic growth, which is generally also associated with maintaining low interest rates by central banks, he said.

"As we invest in the tools in these reserve currencies, respectively, the interest income that the State Oil Fund of Azerbaijan and the Central Bank earn falls," said Sharifov.
As of July 1, 2011, the assets of SOFAZ totaled $30.2 billion, foreign exchange reserves owned by the CBA - $6.498 billion.

SOFAZ's managers are the Treasury of the World Bank, the banks Clarident (part of Credit Suisse) and Deutschebank Asset Management, and the Central Bank - Treasury of the World Bank, the Swiss bank UBS and American JP Morgan.

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