BAKU, Azerbaijan, May 1. In the context of a
surplus current account balance and ongoing dedollarization trends,
foreign exchange market supply exceeded demand in recent months,
while the country’s foreign exchange reserves continued to
increase, Trend
reports via the Central Bank of Azerbaijan (CBA).
The excess of supply over demand in the foreign exchange market
was observed in both cash and non-cash segments.
Due to low demand in recent currency auctions, a supply surplus
formed in the foreign exchange market. In this context, the Central
Bank conducted a purchase intervention amounting to $1 billion in
April.
“As a result, taking into account income from the management of
foreign exchange reserves, the Central Bank’s foreign exchange
reserves increased by $1.02 million in April. All or part of the $1
billion purchased in April may be redirected to the foreign
exchange market to ensure balance, depending on demand formed
during the year. If the Central Bank continues to participate in
the foreign exchange market through purchase or sale operations to
maintain macroeconomic stability, relevant information will be
disclosed,” the statement said.
