Baku, Azerbaijan, March 4
The foreign exchange (FX) reserves of the Central Bank of Azerbaijan (CBA) fell by $372.2 million (8.46 percent) to $4,026.3 million in February 2016 as compared to January 2016, according to CBA statistical data published on its website.
CBA's foreign exchange reserves have declined by $6,978.1 million (63.4 percent) compared to February 2015.
The foreign exchange reserves of the CBA have been declining since July 2014.
Earlier, the decline of the foreign exchange reserves was going on slowly (around $20-50 million). But their volume started to sharply reduce in December 2014, due to an increase in demand for dollar supply in the country.
However, the growth of foreign exchange reserves resumed in May-June 2015. In May, the Central Bank's forex reserves rose by $42.9 million (0.51 percent) compared to April, up to $8.43 billion, and by $89.4 million (1.06 percent) in June.
But, after slight growth, the reduction of foreign exchange reserves of the CBA continued.
The foreign exchange reserves' reduction is due to an intervention carried out by the CBA on the foreign exchange market to keep the rate of manat against the US dollar at a stable level.