Baku:Demand at seven currency auctions in October totaled just $4.5 million, as stated by the Governor of the Central Bank of Azerbaijan, Taleh Kazimov, at a press conference concerning the monetary policy decision.
According to Azeri-Press news agency, no demand was recorded at five of these auctions, with the remaining two totaling the $4.5 million demand. Kazimov highlighted that the average supply per auction in the non-cash foreign exchange market this year was $70 million, whereas the average demand amounted to only $15 million.
Kazimov also pointed out that in the cash foreign exchange market, supply exceeded demand. Over nine months, foreign currency purchases from customers by exchange offices surpassed sales by $759 million. Additionally, the dedollarization process in the banking sector is ongoing, with a notable decrease in the dollarization of deposits held by both resident and non-resident individuals.
He further stated that due to these factors, the Central Bank of Azerbaijan conducted foreign currency purchase interventions, resulting in the Central Bank’s foreign exchange reserves reaching a record high of $15.4 billion.