BAKU, Azerbaijan, Jan. 14
By Zeyni Jafarov - Trend:
The Central Bank of Azerbaijan (CBA) sold $100.1 million to the local banks at the foreign exchange auction held with the participation of the State Oil Fund of Azerbaijan (SOFAZ) on January 14, 2021, Trend reports citing the country's CBA.
The demand from banks at the auction decreased by 29.6 percent compared to the previous indicator and was fully met.
At the end of the auction, the weighted average rate of the manat to the dollar amounted to 1.7 AZN / USD.
Earlier the CBA reported that the expectations formed in recent days amid the unfounded news in the press and social networks about the fall of the Azerbaijani manat rate caused a certain demand in the cash currency market, which affected the relative growth of demand at foreign exchange auctions.
However, opinions about the fall of the Azerbaijani manat rate are unfounded, given the rise in oil prices compared to 2020, the adoption of positive decisions on oil production at the recent OPEC + meeting, the launch of vaccination programs against the COVID-19 virus worldwide, and huge transfers from the State Oil Fund of Azerbaijan.
In this regard, the growing demand for cash currency is temporary and will soon subside.
The national currency rate has been stable since 2017. This year, ensuring stability in the foreign exchange market will also remain at the center of attention of the Central Bank of Azerbaijan.
Follow the author on Twitter: @jafarov_zeyni