SOFAZ sees gold as strategic reserve, not short-term income

Gold held by the Azerbaijan State Oil Fund (SOFAZ) is not a source of short-term revenue but serves as an asset to safeguard the country's strategic foreign exchange reserves, SOFAZ told Report.

According to SOFAZ, gold is relatively free from issuer and counterparty risks and plays a role in strengthening the resilience of the portfolio amid real interest rates, currency markets, and geopolitical uncertainties.

"The fund's approved investment policy for 2026 sets a target allocation for the gold sub-portfolio at up to 35% of the total investment portfolio, with a maximum deviation interval of 4%. Current levels indicate that existing gold reserves remain within the fund's strategic framework. The gold sub-portfolio was formed in line with the initial plan in Q3 of this year and has reached the intended targets," SOFAZ said.

"Therefore, decisions regarding the gold sub-portfolio in future periods will not aim to react to short-term price fluctuations. Instead, they may be reassessed based on the approved strategy, risk-return balance, and overall portfolio structure," SOFAZ told Report.