SOFAZ’s Currency Composition to Undergo Changes

Oil&Gas Materials 25 January 2008 18:08 (UTC +04:00)

Azerbaijan, Baku, 25 January / corr Trend I.Khalilova / In 2008 the State Oil Fund of Azerbaijan (SOFAZ) will inject changes to the structure of currency portfolio of the Fund, reducing the special weight of assets in UD dollar by 5%, Shahmar Movsumov, the SOFAZ Executive Director, stated on 265 January to a news conference dedicated to results of 2007 activities.

According to Movsumov, the changes include cut in USD equivalent in SOFAZ reserves from the current 55% to 50% and increase of currency portfolio to 40%. The rest 5% will be placed in GBP and 5% will be distributed among these currencies or put in other currency units.

Hence, in accordance with the SOFAZ finance governance rules, the currency diversification happens in the following way: 55% is placed in dollars, 35% in euro, 5% in GBP and 5% other currency.

Movsumov said that the profitability from dollar assets, which comprised 61.65% of SOFAZ funds, constituted 6.28% at the end of last year, in euro assets - 1.6% (the portfolio comprising 34.1%), GBP assets - 4.9% (4.25%).