SOFAZ's sales of foreign currency hit $606.4m in September

2 October 2020 16:56 (UTC+04:00)

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By Ayya Lmahamad

The State Oil Fund of Azerbaijan sold funds in the amount of $606.4 million at foreign currency auctions in September, which is 21 percent more compared to August, local media has reported.

It should be noted that SOFAZ sold funds in the amount of $478 million at foreign currency auctions in August 2020.

Moreover, the fund sold funds in the amount of around $5.4 billion at foreign currency auctions during the period of January-September 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.

The State Oil Fund's revenues from the major oil and gas fields amounted to $3 billion for the period of January-August 2020. Revenues from the Azeri-Chirag-Guneshli block of fields, which are the largest oil fields in the Azerbaijani sector of the Caspian Sea, amounted to $2.6 billion, during the reporting period. In addition, the fund's revenues from the Shah Deniz field, which is among the world’s largest gas-condensate fields, amounted to $232 million, during the first eight months of the year. Revenues from the sale of condensate from Shah Deniz field amounted to $166 million.

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 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.