SOFAZ's sales of foreign currency hit $478 million in August
By Ayya Lmahamad
State Oil Fund of Azerbaijan sold funds in the amount of $478 million at foreign currency auctions in August 2020, fund’s press service has reported.
According to the statement, there was a decrease in the volume of foreign currency sales by 7.2 percent compared to July. It should be noted that SOFAZ sold funds in the amount of $ 515.5 million at foreign currency auctions in July 2020.
Moreover, the fund sold funds in the amount of around $5 billion at foreign currency auctions during the period of January-August 2020, which is an annual increase by 24 percent.
It should be noted that, SOFAZ is currently the main source of currency sale at currency auctions.
Revenues of the State Oil Fund of Azerbaijan from oil and gas sales amounted to AZN 4.1 billion ($2.4bn) in 2020. In the first half of 2020, the volume of transfers from SOFAZ to the state budget amounted to AZN 5.7 billion ($3.3bn).
It should be noted that during the period of 2003-2019, the State Oil Fund of Azerbaijan transferred $99.7 billion to the state budget.
SOFAZ was established in December 1999 by the Presidential Decree and is a sovereign wealth fund of Azerbaijan, which accumulates and preserves the nation's oil and gas revenues for future generations. The fundamental mission of SOFAZ is to ensure intergenerational equality with regard to the country's oil wealth and to accumulate and safeguard the oil revenues for generations to come.
The Fund accumulates income from the sale of oil contracts, and in 2003 it started to make transfers to the state budget of Azerbaijan. As for now, SOFAZ contribution to the country’s GDP is over 80 percent.
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