Foreign currency demand of Azerbaijani banks up – MENAFN.COM

SectorFinancial Markets

The Central Bank of Azerbaijan (CBA) held a new foreign exchange auction with the participation of the State Oil Fund of Azerbaijan (SOFAZ) on July 22, 2021, Trend reports referring to a source in the CBA. According to the source, the demand from Azerbaijani banks at the auction increased by 41. 8 percent compared to the previous indicator and was fully met.

During the auction, the CBA sold $72. 6 million to the local banks. At the end of the auction, the weighted average rate of the manat to the US dollar amounted to 1. 7 AZN/USD. The first foreign exchange auction for a long time was held with the participation of SOFAZ on March 10, 2020, during which Azerbaijani banks purchased $323. 2 million. The CBA began to conduct currency auctions through a one-way sale of currency in a competitive environment from mid-January 2017. A decision was made in March 2020 to hold extraordinary currency auctions due to the increased demand of the population for foreign currency amid the failure of the OPEC + deal, which led to a sharp drop in oil prices. Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind. We do more...