The gold was temporarily stored in the vaults of the Central Bank of the Republic of Azerbaijan.
BAKU(BullionStreet): Azerbaijan's State Oil Fund (SOFAZ) purchased one more ton of gold on the first week of this month to make the total at 4 tons.
UK’s Brinks Global Services completed the purchase for SOFAZ in compliance with the rules set forth by the LBMA. The gold was temporarily stored in the vaults of the Central Bank of the Republic of Azerbaijan.
The State Oil Fund of Azerbaijan, the sovereign wealth fund, was set up in December 1999 by the Presidential Decree as an extra-budgetary entity which accumulates and manages oil and gas revenues of the country.
The Fund’s primary objectives are to help maintain macroeconomic stability in the country and to generate wealth for present and future generations. As of 01 January, 2013, assets of SOFAZ totaled $34 129.4 mln.
In accordance with the amendments under the Presidential decree, up to5% of the investment portfolio can be invested in gold.
Earlier SOFAZ announced plans to bring its gold reserves to 30 tons by late 2013.
The main purposes of the fund are the accumulation of funds and placement of assets abroad to minimize the negative impact on the economy, preventing the so-called Dutch disease to ensure savings for future generations and to maintain the current social and economic standards in the country.