Azerbaijan invests in the Chinese yuan

Baku. 3 July. REPORT.AZ/ Azerbaijan State Oil Fund (SOFAZ) for the high diversification of the currency basket of the investment portfolio in the next phase has begun to invest in the Chinese yuan. To this end, the Chinese central bank obtained a license to carry out investment of 3 billion Yuan and signed a contract for the sale and storage of government bonds and agency bonds.

Report informs referring to SOFAZ, on July 1 starts the first investment in the Chinese yuan. As a next stage investment in the Chinese stock market is envisaged. To this end, also planned to obtain a license on "Authorized foreign institutional investors" of Regulatory Committee for Securities of China.

According to the "Rules of storage, placement and management of SOFAZ currency assets", approved by Presidential decree of June 19, 2001, the investment portfolio of the fund may be placed in the currencies of the "Group of Seven" (the US, Germany, Britain, France, Italy, Canada and Japan), the countries of the European Monetary Union, Russia and Turkey, as well as in assets denominated in currencies of countries with a credit rating no lower than "A" (S & P, Fitch) and "A2" (Moody`s) long-term liabilities .