State Oil Fund of Azerbaijan sold funds in the amount of $495.5 million at foreign currency auctions in November 2020, “QİA.AZ” has reported.
According to the statement, there was a decrease in the volume of foreign currency sales by 11.5 percent compared to October. It should be noted that SOFAZ sold funds in the amount of $560.3 million at foreign currency auctions in October 2020.
Moreover, the fund sold funds in the amount of around $6.6 billion at foreign currency auctions during the period of January-November 2020.
SOFAZ is currently the main source of currency sale at currency auctions.
Earlier it was reported that revenues of the State Oil Fund from the major oil and gas fields amounted to $3.5 billion for the period of January-October 2020. Of this, 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 $3 billion, while the fund’s revenues from the Shah Deniz field, which is among the world’s largest gas-condensate fields, amounted to $276 million. Revenues from the sale of condensate from Shah Deniz field amounted to $205 million.
The State Oil Fund of Azerbaijan has increased the gold reserve by 0.6 tons since the beginning of 2020. As of September 30, the total volume of gold in the investment portfolio of the Fund was 101.8 tons. Moreover, at the beginning of the 2020, the volume of gold in the investment portfolio of the Fund was 101.2 tons.
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.