Accounting Chamber: SOFAZ invests more in assets in US dollars


January 23, Fineko/abc.az. For the first time the draft investment policy of the State Oil Fund of Azerbaijan (SOFAZ) provides for changes in the composition of the foreign exchange portfolio by currency.

ABC.AZ reports that this is stated in Accounting Chamber’s conclusion on SOFAZ draft budget 2020.

Thus, the Fund should place 55-70% of the total cost of foreign currency funds (50% in the current year) in US dollars, 15-30% (35% in the current year) in euro up to 5% in British pounds (the same this year), and up to 10% in other currencies (the same this year).

The Eurozone is experiencing the low rate of economic growth. In addition, there is a significant mass debt burden in the Eurozone countries, and the observed economic weakening indicates the application of soft monetary policy for the near term. However, given that the recent trend towards higher yields in securities markets with fixed income in euro continues to decline. This, in turn, creates an expectation of negative returns for the euro portfolio in 2020.