State Oil Fund of Azerbaijan will reduce currency sales

Baku. 7 April. REPORT.AZ/ Because of surplus in execution of the state budget in the amount of 1, 0546 mln AZN, the State Oil Fund of Azerbaijan (SOFAZ) may reduce the volume of transfers to state budget in the second quarter.

Report informs, SOFAZ paid 1 660 mln AZN to the state budget in first quarter.

In general, in 2016 to Fund planned to transfer 7 615 mln AZN to the state budget.It should be noted that at the foreign exchange auctions by Central Bank on a regular basis the Fund converted 1 253,6 mln USD into manat.

Taking into account the average official exchange rate at around 1,58 AZN / USD SOFAR bought at these auctions 1980 mln AZN, of which 1 660 million AZN transferred to the budget. As a result, 300 mln. AZN of additional funds in the national currency left in SOFAZ.

Analytical Report group believes that if we add to the budget surplus the difference between the proceeds from the sale of currency funds and the actual amount of the transfer, in the second quarter it is projected to make a transfer to the budget in a small volume.If the foreign exchange market will not have a serious demand, SOFAZ in April-June, is likely to reduce the amount of foreign exchange intervention to 200-300 mln USD.