Baku, Azerbaijan, Apr. 4
By Azad Hasanli - Trend:
The Central Bank of Azerbaijan purchased $400,000 at a currency auction Apr. 4, the bank said in a message.
The Central Bank of Azerbaijan has carried out the purchase of dollars through an auction for the first time since May- June 2015. Following the devaluation of the manat, the central bank implemented only dollar intervention, except the mentioned period.
The manat exchange rate is formed based on supply and demand in the currency market in accordance with the regime of flexible exchange rate of the manat, according to the bank's message.
"However, in conditions of the de-dollarization due to the fact that supply has recently exceeded demand, the rate of national currency started to consolidate against the dollar," the central bank said. "The need in the manat intervention emerged in order to limit short-term rate fluctuations in the foreign exchange market."
Consolidation of the manat started since March 11, 2016. During this period, the national currency rate against the dollar consolidated by 8.3 percent, from 1.6456 AZN/USD to 1.5094 AZN/USD.