The State Oil Fund of the Republic of Azerbaijan (SOFAZ) has placed a 1 billion euro ($1.1 billion) deposit account within the Central Bank of the Republic of Turkey (CBRT), Azerbaijan’s Trend news agency reported Friday.

The deposit is for a period of six months, the report said.

The investment is expected to make a positive contribution to Turkey's financial stability, SOFAZ said in a statement on its website.

"The investment of these funds in the Central Bank of Turkey was carried out within the investment strategy of SOFAZ," the fund said.

Previously speaking to Bloomberg HT, sources stated that a deposit account would be opened from Azerbaijan.

The central banks of Azerbaijan and Turkey were earlier this month reported to have been close to signing a 1 billion euro currency swap deal, but Chairperson of the Board of the Central Bank of Azerbaijan (CBA) Elman Rustamov on Friday denied such claims.

"The CBA refutes the information spread by several media outlets about alleged negotiations on this matter," Rustamov was cited as saying by Trend news agency.

Rustamov added that the central banks of the two countries are actively cooperating in several spheres.