Central Bank discloses composition of Azerbaijan’s foreign exchange reserves

The Central Bank of Azerbaijan (CBA) has disclosed the composition of its foreign exchange reserves as of the end of 2024.

According to the CBA, 87% of the reserves were held in U.S. dollars, 3% in euros, 2% in Chinese yuan, 1% in British pounds, and 7% in Special Drawing Rights (SDRs) of the International Monetary Fund.

The reserves were managed by dividing them into an operational tranche supporting monetary policy and an investment tranche aimed at maximizing returns. The management strategy involved investing in sovereign and quasi-sovereign bonds with investment-grade credit ratings, alongside cooperation with external asset managers.

The Central Bank noted that reserves were managed in a high-yield strategy amid heightened geopolitical and geoeconomic uncertainties, with efforts also made to increase investments in alternative currencies.