Azerbaijani Economy 11 january — 17:37

Central Bank completely destroyed black market

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BY INFORMATION SECTION

At the meeting of the Azerbaijani Central Bank's Head Elman Rustamov with the managers of the largest banks has been made a sensational decision about the imminent abolition of the +/- 4% margin for fixing exchange rates of foreign currencies by banks. Azeri Daily learned about it from sources in the banking sector. The information is also confirmed by Interfax-Azerbaijan.

Note that the set margin did not allow banks to sell currency at a price higher than the Central Bank's official exchange rate by more than 4%. This led to the creation of a black market, where the currency was sold at the market rate.

Cancelling the margin actually means a full transition to the floating exchange rate of the manat. Now the exchange rate will be set by the banks without restrictive measures, based on the actual supply and demand. This decision will also lead to the complete disappearance of the black market, as it now will have no advantages over commercial banks in matters of currency sales.

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