Oil Fund reserves down 9.5% y/y to US$ 33.6bn in 2015
Due to lower oil prices, State Oil Fund of Azerbaijan’s revenues in 2015 fell 39.4% y/y to AZN 7.7bn (US$ 7.5bn, -53.5% y/y ). As expenditures had not been fully adjusted to balance the revenue shortfall, the Oil Fund recorded a deficit of AZN 1.5bn (US$ 1.4bn). As a result, fund reserves declined from US$ 37.1bn in 2014 to US$ 33.6bn in 2015.
Combined SOFAZ and CBAR reserves were down to US$ 38.6bn as of end-2015 (-24.1% y/y). However, these reserves stood at 72.7% of GDP in 2015, up from 67.6% of GDP in 2014, due to the contraction in nominal GDP in US$ terms.
Central Bank reserves down to US$ 4.0bn in February 2016
Central Bank reserves declined further in February 2016 to US$ 4.0bn (-8.5% m/m), the lowest level since 2008. Overall, the Central Bank lost US$ 1.0bn in 2016 and US$ 11.2bn since the peak in July 2014.
Refinancing rate up 200bps to 7.0%
On March 4, 2016, Central Bank of Azerbaijan increased its refinancing rate by 200bps to 7.0%. This was the second rate hike this year, as CBAR increased the rate from 3.0% to 5.0% on February 15, 2016. At the same time, CBAR has widened the interest rate corridor, keeping the lower band at 2.0% while increasing the upper band from 10.0% to 17.0%.
US$ 260mn sold at FX auctions
The Central Bank and the State Oil Fund sold US$ 260mn in FX auctions last week.
