Baku, Azerbaijan, Nov. 6
By Azad Hasanli - Trend:
Since the beginning of 2015, foreign exchange reserves owned by the Central Bank of Azerbaijan (CBA), decreased by $6.923 billion (50.3 percent), said the statistical data published Nov. 6 on the website of the CBA.
During October 2015, the Central Bank's foreign exchange reserves declined by $180.1 million (2.57 percent) to $6.834 billion compared to September 2015.
The decline in the CBA foreign exchange reserves has been observed since July 2014. Earlier, this happened slowly (around $20-50 million). But their volume has sharply reduced (more than $1 billion monthly) since December. This is associated with an increase in demand for dollar supply in the country.
However, in May-June 2015, the growth of foreign exchange reserves has resumed. In May, the Central Bank reserves increased to $42.9 million (0.51 percent) compared to April, up to $8.43 billion, and by $89.4 million (1.06 percent) in June. However, after slight growth, reduction of foreign exchange reserves of the CBA continued.
The reduction in foreign exchange reserves is due to in particular the intervention carried out by the Central Bank on the foreign exchange market in order to keep the exchange rate of manat against the US dollar at a stable level.