Azerbaijan, Baku, May 4 /Trend I.Khalilova/
Azerbaijan's strategic currency reserves have increased by seven per cent to $43.536 billion during the first quarter of 2012, the Central Bank of Azerbaijan (CBA) said on Friday.
"Such a volume of foreign currency reserves can finance about three years of imports of goods and services" the bank said.
The ratio of the strategic foreign currency reserves to GDP increased to 70 per cent of GDP compared to 64 per cent in 2011, 58 per cent in 2010, 47 per cent in 2009 and 37 per cent in 2008.
Currency reserves held by the Central Bank increased by $344 million (3.3 per cent) during the first quarter and amounted to $10 825.6 million as of April 1. It is sufficient to fund the annual imports of goods and services.
"High growth rates of currency reserves have become a major factor for the formation of a strong macroeconomic buffer and reduce the sensitivity of the economy to foreign crises" the CBA said.
At the same time, the increase in reserves has led to strengthening of the net investment position.
"It is not surprising that the international rating agency Moodys upgraded the bank's issuer default rating in foreign and local currency by one notch to' BA1' to 'BAA3', with the forecast 'Stable'. Two stages remain to achieve the highest level of rating shopping - Segment 'A'" the CBA spokesperson said.