Amid a surplus current account balance and ongoing dedollarization tendencies, supply in the foreign exchange market exceeded demand in the past months of this year, and the country’s foreign exchange reserves continued to grow. The excess of supply over demand in the foreign exchange market was observed in both cash and non-cash segments, APA-Economics reports, citing the Central Bank of Azerbaijan (CBA).
According to the information, in recent periods, due to low demand at foreign exchange auctions, an excess supply has formed in the market, and under these conditions, the Central Bank carried out purchase-oriented interventions totaling $1 billion during April. As a result, taking into account income from the management of foreign exchange reserves, the Central Bank’s reserves increased by $1 billion 29.7 million in April.
The $1 billion purchased in April may be partially or fully reintroduced into the foreign exchange market during the year, depending on the demand that will form in the market, in order to ensure balance.
In order to maintain macroeconomic stability, if the Central Bank continues its participation in the foreign exchange market through purchase- or sale-oriented operations, information about this will be disclosed.
