Azeri state oil fund SOFAZ plans to continue foreign currency sales on the market in 2016 to support the country's ailing manat currency and does not intend to purchase gold this year, the fund's deputy CEO said on Tuesday. "According to the approved 2016 budget of SOFAZ, total outflows from the fund are planned to be approximately 8.2 billion manats ($5.1 billion). This means if there are no amendments to the budget, the fund will need to sell $5.1 billion in 2016 to meet the fund's budget obligations," Israfil Mammadov said in e-mailed comments.
"However if there are amendments to the budget, which is expected, this amount may differ," he added.Mammadov said SOFAZ had no plans to increase its exposure to gold in 2016 and its decision to purchase foreign currencies abroad would depend "on the attractiveness of local currency returns of different investment opportunities located in different countries." He also said SOFAZ did not plan to sell any real estate properties this year and that the fund's revenues were seen below the 6.7 billion manats ($4.2 billion) projected in its budget because of weak oil prices.
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