BAKU, Azerbaijan, May 24. A significant inflow of foreign currency to Azerbaijan was recorded in 2022, Trend reports.
Analysis of the balance of payments data suggests that the increase in the supply of foreign currency in the foreign exchange market is associated with the positive dynamics of exports of goods, as well as money transfers to the country.
According to the Chamber of Accounts, money transfers to the country last year amounted to $3.6 billion, which is 3.2 times more than a year earlier. Also, revenues to the state budget in foreign currency were higher than predicted.
Thus, according to information on the execution of the state budget, in the reporting year, income tax revenues on production sharing agreements related to state budget revenues in foreign currency amounted to almost 5.3 billion manat ($3.1 billion), which is more than the forecast of $2.7 billion.
Meanwhile, state budget expenditures in foreign currency amounted to 4.7 billion manat ($2.8 billion), while were projected at the level of $2.6 billion.
In addition, last year an increase was seen in both supply and demand in the foreign exchange market.
As a result of the sale of foreign currency by the State Oil Fund of Azerbaijan, funds in the amount of 7.9 billion manat ($4.6 billion) were transferred to the state budget. Also, currencies worth about $5.1 billion were sold at 99 currency auctions held last year, which is $1.5 billion, or 22.5 percent less than year-on-year.
The average demand for foreign currency at auction decreased from $67.6 million in 2021 to $52.4 million in 2022.
Moreover, in order to maintain the balance in the financial market, the volume of currency interventions by the Central Bank of Azerbaijan totaled $2 billion.