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.