BAKU, Azerbaijan, June 10
By Zeyni Jafarov - Trend:
The demand for foreign exchange auctions, cash and non-cash segments of the foreign exchange market has been significantly reducing from February of this year, Trend reports referring to the Central Bank of Azerbaijan (CBA).
According to the CBA, in 18 out of 19 foreign exchange auctions held in the second quarter of this year, the demand was lower than supply.
The Central Bank of Azerbaijan (CBA) held a new foreign exchange auction with the participation of the State Oil Fund of Azerbaijan (SOFAZ) on June 10, 2021, at which the demand from the local banks decreased by 28.5 percent compared to the previous indicator and was fully met.
During the auction, the CBA sold $30.6 million to the local banks.
At the end of the auction, the weighted average rate of the manat to the US dollar amounted to 1.7 AZN/USD.
The first foreign exchange auction for a long time was held with the participation of SOFAZ on March 10, 2020, during which Azerbaijani banks purchased $323.2 million.
The CBA began to conduct currency auctions through a one-way sale of currency in a competitive environment from mid-January 2017.
A decision was made in March 2020 to hold extraordinary currency auctions due to the increased demand of the population for foreign currency amid the failure of the OPEC + deal, which led to a sharp drop in oil prices.
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