In October this year, the Central Bank of Azerbaijan (CBA) carried out a selling intervention in the foreign exchange market.
Oku.Az informs that this is stated in the institution’s statement.
In the current year, stability was maintained in the exchange market and demand was fully satisfied in the currency auctions organized by the Central Bank. In general, the foreign exchange market operates in conditions of balance of payments surplus.
“However, last month there was a special sale by the Central Bank in the amount of 424 million dollars to support the execution of state expenditures in foreign currency (state projects and measures, defense, reduction of obligations in foreign currency and another strategic importance). Thus, the Central Bank’s foreign exchange reserves in 10 months Decreased by 241 million US dollars. The Central Bank made foreign exchange sales in the amount of 2.1 billion US dollars from the foreign exchange market in 2023.
“The sale of foreign currency makes it possible to sterilize part of the money supply, which in previous years increased due to purchase-oriented monetary intervention, which contributes to macroeconomic stability in the medium term,” the agency said.
