Azerbaijan's sovereign wealth fund will invest up to $1.8 billion in China's renminbi this year, one of the biggest publicly-acknowledged investments in China's currency.
Shahmar Movsumov, the chief executive of the $37 billion State Oil Fund of Azerbaijan, said that the fund is applying for permission from Chinese regulators to access local currency assets and wants to start investing in them by the end of this year, the Financial Times reports.
"It's one of the currencies that are becoming important, so why not invest in renminbi?" Movsumov said, according to the Financial Times. "We are in the process of getting all the necessary preparations."
The renminbi was the seventh most widely used currency for international payments in April with 1.4 percent of transfers, compared to 0.6 percent in January 2013.
While analysts estimate many central banks may have already started putting small sums into the renminbi, only a few, including Australia, Chile and Nigeria, have publicly confirmed their investments, according to the Times.
Movsumov said that the fund was open to investing in all renminbi assets. The fund has yet to invest approximately 5 percent, or $1.8 billion, of its allocation to other currencies.
"Whatever we will have spare by the end of this year we will allocate to renminbi," Movsumov said, according to the Financial Times.
- Bank of Moscow extends $9.7 million credit facility to Yakutia utility firm
- Bank Vozrozhdenie reviews IFRS results for first six months of 2014
- IMF's Georgian program helps reduce country's fiscal imbalances
- NBU to hold capital expenditures in favor of non-core asset sale
- Bank Saint Petersburg names Vladislav Guz chairman after Savelyev's departure
- Domestic demand in Russia slows in July
- Belarus encourages Lithuanian investment in processing companies
- EBRD to finance energy efficiency projects with $5 million loan to DemirBank
- Armenian PM meets with exporters on boosting trade
- Azerbaijan among top foreign investors in Georgia for 2013