Azerbaijan declined to place State Oil Fund’s assets in local banks
Baku, Fineko/abc.az. The State Oil Fund of Azerbaijan (SOFAZ) does not consider the issue of placement of country’s currency reserves in local banks.
"In compliance with the SOFAZ rules all the finances it runs are placed in overseas banks. The matter of the beginning of placement in domestic banks is not under consideration,” Movsumov stated.
Earlier this year President Ilham Aliyev said that the matter of placement of part of Azerbaijan’s currency reserves in domestic banks was under discussion.
“I think that we can place certain volume of our currency reserves stored abroad in most reliable Azerbaijani banks, but on the condition that these money should be directed precisely for real sector of economy and quite strict state control over their spending,” the President said then.
Then it was stated that the government and the Central Bank were working out this issue. Probably, results of its consideration did not satisfy them.
Following the 3rd quarter of 2009 country’s currency reserves totaled $19.1 bn and SOFAZ assets $13.4 bn. The growth of strategic reserves is expected to be up to $20 bn (including up to at least $14 bn in SOFAZ) before end of 2009.
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