Central Bank of Azerbaijan to determine portfolio of Asian securities

Business Materials 3 November 2014 18:32 (UTC +04:00)

Baku, Azerbaijan, Nov. 3

By Maksim Tsurkov - Trend:

The Central Bank of Azerbaijan will determine the amount of securities portfolio on Asian markets in early December, CBA Deputy Chairman of Board Khagani Abdullayev told Trend Nov. 3.

"The negotiations about the amount of funds placed on the Asian markets are underway," he said. "These volumes must be known by late November - early December. We will report about this in details."

He said that the Chinese market is of particular interest.

"China has a very attractive securities market," he said. "There is less risk, high return. We also show interest in South-East Asia: markets of Indonesia, Malaysia, Singapore, South Korea."

It was previously reported that at the initial stage, the Central Bank intends to increase its securities portfolio on the Asian markets to $500-600 million.

Amundi, Eastspring İnvestments, Western Asset Management companies were chosen on a tender basis to control a portfolio of securities with a stable income in the structure of the CBA foreign exchange reserves on the Asian markets.

The total amount of foreign exchange reserves held by the Central Bank amounted to $15.042 billion as of late September 2014, which is 6.29 percent more than in late 2013 and 13.4 percent as of early October 2013.

The external managers [WB Treasury, the Swiss bank UBS and the American JP Morgan] control around $ 400 million of the CBA foreign exchange reserves. The Central Bank intends to increase this portfolio of up to $1 billion.

edited by CN