Baku, Azerbaijan, Jan. 13
By Azad Hasanli – Trend:
The State Oil Fund of the Azerbaijan Republic (SOFAZ) sold $ 200 million to 32 local banks through the auctions of the Central Bank Jan. 13, SOFAZ said Jan. 13.
Thus, SOFAZ resumed selling of foreign currency in 2016.
"The first auction, held by using a new mechanism - through regular auctions of the Central Bank, was held Jan. 13,” the statement said. “SOFAZ will continue selling the currency through the auctions during a year."
The foreign currency is sold as part of SOFAZ’s transfers to the state budget of Azerbaijan, which are envisaged in the amount of six billion manat in 2016.
SOFAZ was established in 1999 and its assets were equal to $271 million that period.
As of October 1, 2015, SOFAZ assets reduced by 6.38 percent compared to early 2015 ($37.1 billion) and were estimated at $34.74 billion.
Under SOFAZ's regulations, its funds may be used for the construction and reconstruction of strategically important infrastructure facilities, as well as solving important national problems.
The main goals of the State Oil Fund include: accumulation of resources and the placement of the fund's assets abroad in order to minimize the negative affect on the economy, the prevention of "Dutch disease" to some extent, promotion of resource accumulation for future generations and support of current social and economic processes in Azerbaijan.
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