Azerbaijani State Oil Fund to change currency structure of investment portfolio

Business Materials 6 December 2013 16:37 (UTC +04:00)

Istanbul, Turkey, Dec.6
By Abbas Akhundov - Trend:

State Oil Fund of Azerbaijan (SOFAZ) will change the currency structure of its investment portfolio, SOFAZ Executive Director Shahmar Movsumov told Trend.

Currently, the fund has the following currency structure of the investment portfolio: some 50 percent of the assets can be placed in U.S. dollars, 40 percent in euros, five percent in British pounds, the remaining five percent - in other currencies.

"We plan to decrease the share of euros to 35 percent and increase the share of other currencies from five percent to 10 percent. This is due to the fact that we are at the stage of buying real estate in other countries, including in Asia and respectively, this real estate must be assessed in the local currency," Movsumov said.

The draft investment policy of the Fund for 2014 was discussed at a meeting of SOFAZ Supervisory Board and submitted for approval to the president of Azerbaijan, according to Movsumov.

Azerbaijani State Oil Fund was established in 1999. The main goals of the State Oil Fund include: accumulation of resources and the placement of the fund's assets abroad in order to minimize the negative affect on the economy, the prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.