Foreign Exchange Reserves of Central Bank Declined to Critical Level - Expert

Foreign exchange reserves of the Central Bank of Azerbaijan in October decreased by 3% ($ 127.2 million) to $ 4 billion 5 million 500 thousand, the economist Samir Aliyev said.

The expert wrote on his Facebook profile it is the minimum for 8 years and 9 months.

In January 2008, the Central Bank's foreign exchange reserves amounted to $ 3 billion 928.5 million. A record high was recorded on July 31, 2014 - $ 15 billion 193.4 million.

“As seen, the foreign exchange reserves fell to a critical level and the Central Bank does not intend to pass this milestone. The Central Bank without special needs will not participate in the foreign exchange auction,” he wrote.

At the same time Aliyev stressed that the strengthening of the dollar in the last auction was due to the fact that demand exceeds supply.

In addition, the economist noted that another major participant in currency auctions SOFAZ has 7.6 billion dollars of budgetary obligations, of which it has performed $ 6.5-7 billion.

“Taking into account other costs until the end of the year, the Fund will at best be able to sell another $ 1-1.5 billion at the auction. This means that demand will outstrip supply and the devaluation of the manat will continue,” said Aliyev. --71B