The Central Bank of Azerbaijan announced recently that with the country's balance of payments surplus, demand exceeds supply in the country's foreign exchange market, thereby strengthening the national currency.
As a result of the surplus, the CBA purchased from the foreign exchange market $1.3 billion in 2010, $4.1 billion in 2011, $1.5 billion in 2012, $2.4 billion in 2013 and $967 million in the first quarter of 2014, depositing the funds in its foreign exchange reserves.
Foreign exchange reserves increased by seven percent in the first half of this year, reaching $15.1 billion, which exceeds international standards of sufficiency, according to the CBA.
The country's central bank provides quarterly monetary policy updates on its interventions in the foreign exchange market to stabilize the exchange rate of the manta-part of a sterilized currency intervention.
The bank said in purchasing excess foreign currency, central banks are able to prevent sharp depreciation of a foreign currency or appreciation of a national currency. Currencies are generally purchased when a country has a balance of payments surplus.
- BELARUS MINISTRY OF FOREIGN AFFAIRS: Ambassador of Belarus V.Kolesnik meets the Deputy Secretary-General of ASEAN
- BANK OF GEORGIA: The Bank of Georgia has received the Global Finance Award for "Best Internet Banking for Businesses in Central and Eastern Europe"
- FIRST UKRAINIAN BANK - UKRAINE: FUIB doubled sales of OSAGO insurance policies
- CENTRAL BANK OF AZERBIJAN: On holding auctions on attracting funds by the Central Bank
- UNICREDIT - AZERBAIJAN: UniCredit launches first ETFs combining factor strategy with ESG criteria on European equities
- THE BLACK SEA TRADE AND DEVELOPMENT BANK: AIIB, EBRD and BSTDB co-finance expansion of Turkey’s largest geothermal power plant
- GOVERNMENT OF BELARUS: Lukashenko: Belarus wants to deepen economic ties with Latvia
- GOVERNMENT OF ARMENIA: Open Government Partnership Initiative Working Group Holds Meeting
- EUROPEAN INVESTMENT BANK: France: Derichebourg receives EIB financing of 130 million euros under the Juncker Plan
- INTERNATIONAL MONETARY FUND: IMF Executive Board Completes the Second Review under the Extended Credit Facility Arrangement and Approves US$25 Million Disbursement to Burkina Faso