Azerbaijani banks reduce sale of foreign currency

Business Materials 9 May 2017 13:34 (UTC +04:00)

Baku, Azerbaijan, May 9

By Anvar Mammadov – Trend:

Azerbaijani banks sold foreign currency in cash in the amount equivalent to 899.54 million Azerbaijani manats in the 1Q17 that is by 46.2 percent less than in the first three months of 2016, according to a report of the country’s Central Bank (CBA).

As before, the greatest demand was for dollars among the banks’ customers. During the three months of 2017, the sale of US dollars amounted to 365.04 million in manat equivalent (a decline of 2.8 times during the year).

The sales of British pound declined by twofold during the year – to 5.09 million in manat equivalent, sales of euro – by threefold, to 52.62 million in manat equivalent.

The smallest reduction was observed in the trade of Russian rubles. Their sales decreased by only 7.3 percent, to 476.79 million in manat equivalent.

A similar situation is observed in the purchase of foreign currency by banks. During the first quarter of 2017, Azerbaijan’s banks bought US dollars for 277.46 million in manat equivalent that is by 3.4 times less than in January-March 2016. The banks also significantly reduced interest in buying euros – this figure fell by 2.6 times to 33.9 million in manat equivalent during the year.

The opposite situation is observed with the British pound and Russian ruble. The banks increased the purchase of British pounds by 17.2 percent – to 1.26 million in manat equivalent and the sale of rubles – by 21.8 percent up to 2.57 billion in manat equivalent.

Thirty-two banks operate in Azerbaijan, including two state-owned ones.