SOFAZ fulfils part of budget obligation in U.S. dollars

Azerbaijan’s State Oil Fund of Azerbaijan (SOFAZ) fulfilled part of its obligation to the state budget in U.S. dollars in January 2026, Taleh Kazimov, chairman of the Central Bank of Azerbaijan, said at a press conference.

Kazimov said the move was due to low demand at the Central Bank’s foreign exchange auctions. As a result, part of the foreign currency funds was transferred directly to the Finance Ministry without conversion into manats.

“Demand in the foreign exchange market was weak. Therefore, part of the foreign currency funds was transferred to the Ministry of Finance of Azerbaijan without being converted into manats. If demand emerges in the coming months, these funds will be used in the currency market,” Kazimov said.

He added that in January, the population sold more foreign currency than it purchased. Taking transfers into account, actual foreign currency sales at auctions were around $400–450 million lower.

“This was due to a lack of demand,” the central bank chief said.

N. Tebrizli