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Azerbaijan's Central Bank holds extraordinary foreign exchange auction

Finance Materials 12 March 2020 15:21 (UTC +04:00)
The Central Bank of Azerbaijan (CBA) held an extraordinary foreign exchange auction with the participation of the State Oil Fund of Azerbaijan (SOFAZ), attracting 155 million manat ($91.1 million) from Azerbaijani banks
Azerbaijan's Central Bank holds extraordinary foreign exchange auction

BAKU, Azerbaijan, March 12

By Eldar Janashvili – Trend:

The Central Bank of Azerbaijan (CBA) held an extraordinary foreign exchange auction with the participation of the State Oil Fund of Azerbaijan (SOFAZ), attracting 155 million manat ($91.1 million) from Azerbaijani banks, Trend reports referring to CBA.

According to CBA, demand from the banks at the auction increased by 31.2 percent or by 52.6 million manat ($30.9 million) compared to the previous auction, reaching 220.8 million manat ($129.8 million).

Considering the number of days remaining before the next scheduled auction, as well as with the aim of ensuring uninterrupted currency trading by the banks on weekends, the demand of banks at the auction has been fully provided.

The foreign exchange auction was held for the first time in a long time with the participation of the SOFAZ on March 10, 2020, during which Azerbaijani banks acquired 323.2 million manat ($190.1 million).

CBA began to hold foreign exchange auctions through unilateral sale of foreign currency in competitive conditions since mid-January 2017. In March 2020, it was decided to hold extraordinary foreign exchange auctions in connection with the increased demand of the population for foreign currency amid the failed deal OPEC+ (Organization of the Petroleum Exporting Countries), which entailed a sharp decline in oil prices.

(1 USD = 1.7 AZN on March 12)

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Follow the author on Twitter: @eldarjanashvili

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