CBA sees rise in forex reserves

2 June 2016 18:18 (UTC+04:00)

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By Nigar Abbasova

The foreign exchange reserves of the Central Bank of Azerbaijan recorded an increase by $163.7 million in May.

The increase amounts to 4 percent compared to the April indicator. The current amount of the monetary reserves is over $4,284 billion.

The growth of monetary reserves is observed for third month in a row following longstanding reduction period which started in July 2014. Initially the speed of the reduction process was considered to be law, ranging in the framework of $20-50 million. Starting from December 2014, the growth of demand for USD supply lead to sharp decline in the volume of the CBA reserves.

The reduction of monetary reserves was primarily connected with the intervention implemented by Central Bank in the funds market. The main objective of intervention was maintaining of the manat rate at a stable level in relation to USD.

The official exchange rate of the Azerbaijani manat against the US dollar was set at 1.4934 manats for June 2.

Thus, the manat rate against the US dollar dropped by 0.1 percent compared to the rate on June 1.

Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova