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Azerbaijani State Oil Fund to include Chinese Yuan in its currency portfolio

Oil&Gas Materials 29 May 2013 13:11 (UTC +04:00)
The Azerbaijani State Oil Fund (SOFAZ) is considering the inclusion of the Chinese Yuan in its currency portfolio, SOFAZ head Shahmar Movsumov told journalists today.
Azerbaijani State Oil Fund to include Chinese Yuan in its currency portfolio

Azerbaijan, Baku, May 29 / Trend E. Ismayilov /

The Azerbaijani State Oil Fund (SOFAZ) is considering the inclusion of the Chinese Yuan in its currency portfolio, SOFAZ head Shahmar Movsumov told journalists today.

He said there are certain problems of an institutional nature in this issue as China has very strict conditions on investments. SOFAZ is now considering them.

Regarding the opportunity of investing in other currencies, Movsumov said that at present, this issue is not on the agenda. The currency structure of SOFAZ's investment portfolio is as follows: 50 per cent of assets are concentrated in U.S. dollars, 40 per cent - in euros, five per cent - in pound sterling and the rest in Russian roubles, Turkish lira and Australian dollars.

SOFAZ was established in 1999 with assets of $271 million. As of April 1, 2013, SOFAZ's assets amounted to over $34.325 million, or 0.6 per cent more compared to early 2013.

The main purposes of the fund are the accumulation of funds and placement of this fund's assets abroad to minimise negative trends in the economy by preventing 'Dutch disease'. This ensures savings for future generations and the continuity of the country's current socio-economic standard.

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