In the context of a surplus current account balance and ongoing dedollarization trends, supply has exceeded demand in the foreign exchange market in recent months of this year, and the country's foreign exchange reserves have continued to increase. The excess of supply over demand in the foreign exchange market has been observed in both cash and non-cash segments.
Medianews.az reports that this was stated in the information from the Central Bank of Azerbaijan (CBA).
It was noted that due to low demand in recent foreign exchange auctions, an excess of supply has formed in the foreign exchange market, and under these conditions, the Central Bank conducted a purchase-oriented intervention amounting to 1 billion US dollars during April:
"As a result, considering the income earned from the management of foreign exchange reserves, the Central Bank's foreign exchange reserves increased by 1,029.7 million US dollars in April. The full or partial amount of the 1 billion US dollars purchased in April may be redirected back to the foreign exchange market over the course of the year depending on the demand formed in the market, with the aim of maintaining balance. If the Central Bank continues to participate in the foreign exchange market with purchase or sale operations to preserve macroeconomic stability, information about this will be disclosed." //Trend