International Reserves of the Central Bank of Azerbaijan Decreased by 60%

During 10 months the international reserves (ISI) of the Central Bank of Azerbaijan decreased by about 60%. On May 15, reserves amounted to $ 10,581,540,000 against $ 17,782,940,000 in August 2014, when the ISI was marked by a peak.

We can say that the decisive role was played by 35% devaluation of the manat on February 21 this year. A month before it on 15 January to 15 February was a sharp reduction in the ISI - to $ 1.7 billion and after that, as compared with the mid-May ISI decreased by 29% or $ 2.8 billion.

International state reserves are those external assets that are available to and controlled by monetary authorities regulation in order to meet the funding needs of balance of payments deficits, interventions in the foreign exchange markets to influence the exchange rate and other related purposes (such as maintaining confidence in the national currency and the economy, as well as a basis for foreign borrowing). Reserve assets must be foreign currency assets and real ones. International reserves include only high-quality assets. -0-