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SOFAZ can put more than USD 7 bln. foreign currency up for sale this year

19 February 2021 09:41 (UTC +04:00)

Foreign currency, funds with US dollar are converted to manat by the State Oil Fund of the Republic of Azerbaijan (SOFAZ) through auctions organized by the Central Bank in order to execute obligations regarding transfers to the state budget, Fund told APA-Economics as a response to the question on the existence of a limit on currency sale.

Remind that it has been noted in the latest monthly report of the World Bank the SOFAZ carried out currency sale worth about USD 645 mln. in January of this year, which is two times more in comparison with the corresponding period of the previous year and exceeded monthly limit on sale by 8%.

Fond also noted that the main share in the expenditure directions of the SOFAZ budget falls to obligations regarding transfer to the state budget. Expenditures regarding transfer to the state budget is SOFAZ's commitment and regardless of the price of crude oil, this commitment must be implemented. Foreign currency - funds with US dollar are converted to manat by the Fund through auctions organized by the Central Bank in order to implement the mentioned commitments.

"AZN 12,2 bln. budget commitment is envisaged in the SOFAZ budget for 2021, for execution of the commitment, expressed with manat, the Fund puts, in total, USD 7,17 bln. foreign currency up for sale during the year on the basis of a sale schedule of 12 months," the SOFAZ noted.