BAKU, Azerbaijan, Nov. 20
By Zeyni Jafarov - Trend:
From January through September 2020, the rate of the Azerbaijani manat to foreign currencies was formed in accordance with the ratio of supply and demand in the foreign exchange market, Trend reports citing the review of the monetary policy of the Central Bank of Azerbaijan (CBA).
According to the CBA, despite the negative impact of the processes taking place in the external environment, stability in the foreign exchange market of Azerbaijan was maintained as a result of joint actions of the government and the CBA. In the reporting period, the volume of transactions in the foreign exchange market has decreased due to a weakening of foreign economic transactions in connection with the COVID-19 pandemic.
“The cost of transactions in the non-cash foreign exchange market for the first nine months of 2020 increased by 4.1 percent compared to the same period of last year and amounted to $18.7 billion. At the same time, the CBA continued organizing trades for the implementation of foreign exchange sales of the State Oil Fund of Azerbaijan (SOFAZ). Information about each auction was announced to market participants through the Bloomberg terminal before the start of the auction. Thus, a total of 76 foreign exchange auctions were held at the CBA over the reporting period,” said the CBA.
The official rate of the manat to the US dollar for the expired period of 2020 was set on the basis of the average rate for interbank transactions. The daily rate of the manat against the US dollar amounted to 1.7 manat. The purchase rates for foreign currency set by the banks were close to the official rate. Thus, the average daily purchase rate of commercial banks amounted to 1.699 manat, and the selling rate - 1.7025 manat. The difference between the official rate and the average daily purchase rate of commercial banks was 0.001 manat, and the difference between the selling rate was 0.0025 manat.
---
Follow the author on Twitter: @jafarov_zeyni