Azeri National Bank Reserves to Increase in 2007
As of December 1, 2006, the official currency reserves located in disposal of the National Bank of Azerbaijan (NBA) amounted to $1,721 bln. The growth equaled $961 mln as comprised to the beginning of the year, the NBA Director General, Avtandil Babayev, informed Trend.
It was forecasted as a result of 2006 that the currency reserves will exceed $1,7 bln. According to the initial accounts, the reserves of the NBA for the next year will importantly increase nearly by $1 bln.
Presently the NBA has involved a new manager Treasury of the World Bank to manage the currency reserves.
The difference is that in the world practice, the Central banks appeal mainly to this financial institute. We began co-operating with the Treasury Department of the World Bank (WB) and transferred $100 mln to its management, NBA Director General said.
One of the terms of transferring the finances to the WB management is that the WB will, within the three-year program of consultations and currency management, provide assistance in raising the NBA management potential. At present, $250 mln have been transferred to the management of the foreign managers.
Generally the management of the NBA reserves is carried out effectively, taking into consideration the protection, risks and their diversification in various tools. It is not intended to increase the portfolio of the reserves transferred to the management of the foreign managers next year because it is implied to hold monitoring of the efficiency and results of such co-operation. On the other hand, we have enough management experience and there are investments principles, Babayev said.