Azerbaijani Economy 12 january — 14:08

Central Bank on increased demand for dollars: Opinions on manat's fall are unfounded

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On January 12, 2021, the Central Bank of Azerbaijan (CBA) sold $142.2 million to banks at a currency auction held with the participation of the State Oil Fund (SOFAZ), the Central Bank's press- service reported.

The demand from banks at the auction was fully met. As a result of the auction, the weighted average rate of the manat to the dollar amounted to 1.7 AZN per 1 USD.

The CBA reported that the expectations, formed in recent days against the background of unfounded news in the press and social networks about the alleged fall of the manat, caused a certain demand in the cash currency market, which affected the relative growth of demand at currency auctions.

However, given the increase in oil prices compared to 2020, the adoption of positive decisions on oil production at the recent OPEC+ meeting, the launch of vaccination programs against the COVID-19 virus worldwide and significant transfers from the State Oil Fund, opinions about the fall of the manat are unfounded. In this regard, the growing demand for cash currency is temporary and will soon subside.

At the same time, in recent days there have been reports that banks have had problems with the sale of non-cash US dollars and this is due to foreign exchange auctions, which is also unfounded. It is reported that currency auctions are held by the Central Bank twice a week (Tuesday and Thursday) and the requirements of banks for cash and non-cash currency at these auctions are satisfied in full.

Recall that since 2017, the national currency rate has been stable. This year, ensuring stability in the foreign exchange market will also remain in the centre of attention of the Central Bank of Azerbaijan.

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