The Central Bank of Azerbaijan (CBA) announced on Tuesday that, despite media reports to the contrary, foreign exchange reserves are being utilized to maintain financial stability.
According to the release, the exchange reserves are a critical driver in the macroeconomic space and they play a key role in keeping finances in Azerbaijan stable. They also provide a cushion against crisis in currency.
The CBA purchased $270 million worth of intervention measures over 11 months in 2014. This prevented a sharp increase of the currency against the U.S. dollar.
The ruble's depreciation has undoubtedly affected the foreign exchange market in Azerbaijan, the release stated. Demand for U.S. currency was driven up leading to the purchase of additional interventions in cash and cashless forms amounting to $127 million in December 2014. According to the bank this allowed the country to be able to adapt and stabilize its finances in accordance to new standings in the market.