BAKU, Azerbaijan, July 23. Supply exceeded demand in the foreign exchange market in Azerbaijan, covering both cash and non-cash segments, in the past period of the current year, Trend reports via the Central Bank of Azerbaijan (CBA).
The bank noted that the continued decrease in the dollarization of deposits of resident individuals indicates optimistic expectations regarding the exchange rate. The external sector indicators, which underpin the balance in the foreign exchange market, remain favorable.
According to the State Customs Committee, in the first six months of 2025, a positive balance of $1.4 billion was recorded in the foreign trade balance. The CBA's forecast that the current account of the balance of payments will be in surplus at the end of 2025 and 2026 remains unchanged.
By decision of the CBA Management Board, all parameters of the interest rate corridor were lowered by 0.25 percentage points. The policy rate was reduced to seven percent, the lower bound of the corridor to eight percent, and the upper bound to eight percent.
The decision was made considering the alignment of actual inflation with the forecast inflation trajectory and its comparison to the target range (4±2 percent), recent global economic developments, the domestic macroeconomic situation, ongoing stability in the currency market, as well as the transmission of monetary policy decisions.
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