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Central Bank: Azerbaijan plans to expand its foreign management of currency reserves

Business Materials 18 July 2011 17:23 (UTC +04:00)

Azerbaijan, Baku, July 18 / Trend I.Khalilova /

Improved mechanism of controlling Azerbaijan's strategic foreign currency reserves will increase their profitability ratio, the Central Bank of Azerbaijan (CBA) told Trend on Monday.

These measures are reflected in the Action Plan for 2011-2015 to implement the State Program on Poverty Reduction and Sustainable Development for 2008-2015 approved by President Ilham Aliyev on June 28, 2011.

"These actions enable to diversify investment assets, use the best practices at every stage of the investment process and optimize the efficiency of reserve management through expanding foreign control," the CBA said.

The country's strategic currency reserves amounted to $37.5 billion as of July 1, including 19 percent ($6.947.5 billion) in foreign currency reserves of the Central Bank. The major part was formed from the assets SOFAZ - 10.002.8 million, while the remainder was accounted for by deposits of the government (the Finance Ministry).

"The strategic currency reserves are an important indicator of Azerbaijan economic security, and also important financial resource for achieving social and economic development. At the same time, the management of these reserves in foreign assets facilitates entrance of large amounts of income into the country ".

SOFAZ managers are the Treasury of the World Bank, the banks Clarident (unit 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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