Azerbaijan’s State Oil Fund talks on currency sales via auctions

BAKU, Azerbaijan, Sept.16 By Leman Zeynalova – Trend: Azerbaijan’s State Oil Fund (SOFAZ) has sold $5 billion or 8.5 billion manat via auctions held by the country’s Central Bank as of August 2020, SOFAZ told Trend. “In accordance with our obligations, we sell foreign currencies via the auctions held by the Central Bank of Azerbaijan. According to the decree of Azerbaijan’s President dated August 31, 2020 “On the budget of Azerbaijan’s State Oil Fund for 2020”, the Fund’s expenditures stand at 12.4 billion manat. “The major part of the SOFAZ expenditures accounts for transfers to the state budget, as well as financing of the social and economic projects. “Under the abovementioned obligations, Azerbaijan’s State Oil Fund has sold $5 billion or 8.5 billion manat via auctions held by the country’s Central Bank as of August 2020. SOFAZ’s investment portfolio consists of high-liquidity and high-quality assets, which ensure full and timely fulfillment of all the obligations of the Fund,” said SOFAZ. The State Oil Fund of Azerbaijan was established in 1999, and at that time its assets stood at $271 million. The mission of the State Oil Fund of the Republic of Azerbaijan (SOFAZ) is to transform depletable hydrocarbon reserves into financial assets generating perpetual income for current and future generations. The main goal of the establishment of SOFAZ is to accumulate and efficiently manage oil revenues. SOFAZ's activity is directed to the achievement of the following objectives: Preserving macroeconomic stability, ensuring fiscal-tax discipline, decreasing dependence on oil revenues and stimulating development of the non-oil sector; Ensuring inter-generational equality with regard to the country's oil wealth and accumulate and preserve oil revenues for future generations; Financing major national scale projects to support socio-economic progress. --- Follow the author on Twitter: @Lyaman_Zeyn