BAKU, Azerbaijan, November 1. Supply has exceeded demand at 99 percent of currency auctions held by the Central Bank of Azerbaijan (CBA) since the beginning of the year, Trend reports via the CBA.
"Under conditions of foreign trade surplus ($13.9 billion from January through September), supply exceeded demand in 99 percent of currency auctions conducted by the Central Bank since the beginning of the year. For this reason, the Central Bank's intervention in the foreign exchange market amounted to almost $1.2 billion from January through October 2023. The foreign exchange reserves of the Central Bank increased by 16.8 percent, or $1.5 billion, and amounted to $10.5 billion from January through October 2023," the CBA said.
The Central Bank of Azerbaijan held a regular currency auction with the participation of the State Oil Fund of Azerbaijan (SOFAZ) on October 31, 2023. The CBA data show that demand at the auction amounted to $41 million (a decrease of 18.81 percent or $9.5 million compared to the previous auction) and was fully satisfied.
The weighted average exchange rate at the end of the auction amounted to 1.7 AZN/1 USD.
At currency auctions, $2.8 billion has been bought since the year's start. The auction held on March 28, 2023, saw a record-high demand for the currency of $96.3 million.
The average demand at currency auctions organized by the Central Bank of Azerbaijan in 2022 amounted to 52.4 million manat ($30.8 million), while the supply was $70 million.
Moreover, the CBA started conducting currency auctions by one-way sale of currency in competitive conditions in mid-January 2017.
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