Only 0.0015% of SOFAZ Investment Portfolio - in Manat
Only $ 57.1 million assets of the State Oil Fund of Azerbaijan (SOFAZ) are placed in Azerbaijani manat (total assets - $ 37 783 300 000).
According to the report of the main supplier of the state budget, its total investment portfolio at the end of the first half-year was $ 35 billion 726.2 million. Slightly more than half of them (50.1%, or $ 17 billion 889.1 million) was placed in US dollars. Just over a third (34%) is located in euros, 5.1% - in pounds sterling, 0.6% - in Australian dollars, 1.1% - in Turkish liras, 1.8% - in Russian rubles, 1.2 % - in South Korean wons, 1.4% - in Chinese yuans, 1.5% - in other currencies, and 3.2% - in gold.
The largest share of accommodation (44.1%) of the investment assets of the portfolio is in corporate securities, 20.1% - in financial bonds, 11.9% - in the bonds of agencies and international organizations, 11.8% - in short-term commercial papers, etc.
Talking about the geography, the primacy of the investment portfolio (57.28%) is for the countries of Europe, 24.03% - North America, 8.59% - Asia Pacific, and the rest - for the other regions.
About four-fifths (79.9%) of the investment portfolio is placed in bonds and deposits, 7.7% - in shares, 4.3% - in money market instruments, 3.2% - in gold, 2.9% - in real estate, and 2% - in investment projects.
SOFAZ is an off-budget state institution accountable only to the President. It should accumulate income from the sale of oil contracts, in particular, from the sale of profit oil and gas of the state, transit tariffs for the transportation of oil and gas on the territory of the country, from the lease of state property and so forth. Since 2006, its resources have been the main (average, 55 %) replenishment of the profitable part of the state budget. --17D-
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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