Reserves of Azerbaijan’s Central Bank decrease by over $5 billion
The Central Bank of Azerbaijan has reported about the decrease in the volume of its foreign exchange reserves by $1.186 billion (13.95 percent) in August and by $7.3 billion compared to the same period of 2014.
Since early 2015, the CBA foreign exchange reserves decreased by $5.37 billion (42.3 percent), according to the September 4 report of the Bank.
The decline in the CBA foreign exchange reserves has been observed since July 2014. Earlier, this happened slowly (around $20-50 million). But their volume has sharply reduced since December. This is associated with an increase in demand for dollar supply in the country.
However, the growth of foreign exchange reserves resumed in May-June 2015. In May, the Central Bank reserves increased by $42.9 million (0.51 percent) - up to $8.43 billion compared to April, and by $89.4 million (1.06 percent) in June. However, after a slight growth, the reduction of foreign exchange reserves of the CBA continued.
The reduction in foreign exchange reserves is due in particular to the intervention carried out by the Central Bank on the foreign exchange market in order to keep the exchange rate of manat against the US dollar at a stable level.
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