CBA to invest $1 bln in Asian securities market
By Aynur Jafarova
The Central Bank of Azerbaijan (CBA) is planning to invest $1 billion in the Asian securities market, Deputy Chairman of the CBA Avtandil Babayev told journalists on November 17.
“The Chinese market is governed by special rules, and in order to enter this market, the Central Bank has concluded a special agreement. Investments in the markets of other Asian countries will be carried out by foreign managers,” he said.
The CBA official also noted the total amount of investment will be $1 billion.
“Some $500 million will be invested in the Chinese market directly by us on the basis of the contract, and the rest $500 million - by foreign managers in other Asian markets,” Babayev added.
The markets of Indonesia, Malaysia, Singapore and South Korea are in the focus of the CBA.
The Amundi, Eastspring Investments, Western Asset Management companies were selected to the CBA structure of foreign exchange reserves on a tender basis in order to control the portfolio of securities of the Asian markets.
Babayev went on adding that the CBA is also planning to increase its foreign exchange reserves to $17 billion.
“The Central Bank pursues intervention policy aimed at the redemption of foreign currency from the market and increasing foreign exchange reserves. We plan to increase the volume of interventions to $1.5 billion until the end of this year,” he said.
The volume of foreign exchange reserves of the CBA will be
increased to $15.5-$15.7 billion till the end of 2014.
“We predict to maintain the level of intervention in the amount of
$1.5 billion in 2015. This means that we plan to increase the
amount of our reserves to $17 billion,” he stressed.
Rapid growth of the currency reserves was the main factor for the
formation of a strong macroeconomic buffer and reduction of
sensitivity of the domestic economy towards external shocks.
The increase in reserves has led to the maintenance of the
continued net investment position of the country at an acceptable
level.
As of the end of September 2014, thetotal amount of foreign exchange reserves of the CBA amounted to over $15.042 billion, which is 6.29 percent more compared to the end of last year.
About $400 million of the foreign exchange reserves of the CBA was transferred under the control of external managers. The bank intends to increase this portfolio up to 1$ billion.