Foreign currency purchases increase in Azerbaijan

The exchange rate of the Azerbaijani manat to foreign currencies was formed in accordance with the ratio of supply and demand in the foreign exchange market from January through September 2022.

This is stated in the "Monetary Policy Review" of the Central Bank of Azerbaijan  (CBA), Report informs.

The document notes that the improvement of the balance of payments during the reported period has supported the supply in the foreign exchange market, and thus the stability of the exchange rate has become the main anchor of price stability.

During the reported period, the volume of foreign exchange transactions increased in all market segments.

The volume of transactions in the non-cash foreign exchange market increased by 16.3 per cent year-on-year amounting to $22.3 billion for nine months. Some 84.5 per cent of non-cash foreign exchange transactions were carried out in US dollars, while 15.5 per cent - in other currencies.

According to the CBA, 29.6 per cent of foreign exchange transactions were carried out in the interbank foreign exchange market, 70.4 per cent - in the intra-bank foreign exchange market.

During the reported period, the volume of bank operations for the purchase and sale of foreign currency cash amounted to 3.9 billion, which is 46.9 per cent more than in the same period of last year.

Some 87.2 per cent of cash transactions accounted for the US dollar.