Central bank earns $94M through managing currency reserves 

Currency reserves of the Central Bank of Azerbaijan (CBA) were managed in the context of global shock arisen from the pandemic and accompanied by international large-scale monetary and fiscal stimulation, and the priority of the currency reserves management was to preserve funds, Report informs, citing the CBA.

In compliance with the strategy and rules of the currency stocks management, the CBA's currency reserves are divided into 14 investment tranches. The operational tranche that serves support of CBA monetary policy throughout the current year is in the USD. In the structure of the investment tranche, 90% is in the USD, 5% in EUR, 2% in GBP, and 3% in SDR.

So as to provide the effectiveness of the management, the CBA currency stocks were managed through investing in the liquid and high-quality state, quasi-state, and corporate debt obligations.

Along with domestic management, the CBA continued to cooperate with foreign managers in 2020. As a result, the effectiveness of the investment portfolios increased.

In the reporting period, the currency reserves rose by $112 million or 1.8% to $6.4 billion. The bank earned $93.65 million from the management of the currency assets,