The total currency reserves of the Central Bank of Azerbaijan have increased by 10.13 percent or $1.185 million since early 2013, a report posted on the bank's website said.
According to the report, as of the end of July 2013, the total volume of currency reserves of the central bank hit $12.88 million.
As of early 2013, the currency reserves of the bank stood at $11.694 million.
Deputy Chairman of the bank, Khagani Abdullayev, said earlier that the bank is studying new instruments for management of its own currency reserves. According to him, the bank is not considering any drastic, profitable options of placement and resorts to instruments with stable rating.
"Currently our strategy includes several items on the diversification of instruments. We don't expect any radical displacements in the portfolio. However, we are considering new instruments in developing markets. Principally, they are long-term securities and deposits," Abdullayev said.
According to statistical data, as of August 1, 2013, the monetary base of the central bank in national currency amounted to 10.427 million manats.
The volume of the monetary base increased by 16.6 percent compared to July 2013.
According to data from the central bank as of July 1, the monetary base amounted to 8.94 million manats.
The volume of the monetary base decreased by 0.8 percent compared to early 2013. As of January 1, 2013 the figure hit a record level of 10.515 million manats.
The official exchange rate on August 20 is 0.7845 AZN/USD.
The central bank reported in February that during 2012, Azerbaijan's strategic currency reserves increased by 14 percent ($5.5 billion), exceeding $46 billion.
Currently, the ratio of strategic currency reserves to GDP is close to 70 percent. Azerbaijan is one of the top 15 countries in the world.
Rapid growth of currency reserves was the main factor for the formation of a strong macroeconomic buffer and reduction of sensitivity of the economy towards external crises.
Moreover, the increase in reserves led to the maintenance of the continued net investment position of the country at an acceptable level.