Currency reserves of the Central Bank of Azerbaijan (CBA) decreased by $127.2 million MoM (3.08%) to $4.005 billion in October, according to the CBA statistical data.
The Central Bank’s currency reserves have decreased by 1.011 billion manats, or by 20.2% since early 2016.
The reduction in CBA’s currency reserves began in June 2014. The reduction was at a slower rate (in the range of $20-50 million) at the beginning, but a sharp decline in the volume of reserves began in December 2014 due to an increase in demand for dollar in the country.
The reduction of currency reserves is related, in particular, to the intervention carried out by the CBA on the currency market to keep the exchange rate of Azerbaijani manat against the US dollar at a stable level.
During 2016, the volume of currency reserves increased by 0.9% in March, by 1.35% in April, by 3.97% in May and by 0.7% in August. (Trend/Business World Magazine)