Most Banks Stopped Sale of Foreign Currency

On the background of growth of the US dollar once again actualized shortage of foreign currency in commercial banks of Azerbaijan. Turan’s poll showed that the majority of banks have stopped selling foreign currency. E.g. Access Bank, Amrah Bank, Bank of Baku, Pasha Bank, Bank Respublika, Capital Bank and the International Bank of Azerbaijan reported the sale of the currency was suspended.

Demir Bank has introduced a limit - 100 dollars or Euros in one hand. Only a source in Ata Bank reported that they sell foreign currency without any restrictions.

It should be noted that in October experts predicted growth of the US currency by the end of the year, and noted that it will be associated with the excess of demand over supply.

On November 22 at the currency auction dollar was established at 1.7146 manat. However, due to the non-transparent information policy of the Central Bank of Azerbaijan it is impossible to know the demand and supply on the foreign exchange auction.

According to expert estimates, the monthly demand for the dollar in the country is from 1 billion to 1.5 billion. The main supplier of the foreign exchange market is the State Oil Fund (SOFAZ). According to SOFAZ, in October it sold 371 million dollars from the auction.

The Central Bank from time to time intervenes in the foreign exchange market and in October its foreign exchange reserves decreased by 127 million dollars. Experts predict that by the end of the year the dollar will rise to 1.80-1.85 manat.

Against the backdrop of currency shortages, the "black market" exchange has revived. There the rate of purchase and sale of foreign currency is much higher than the rates of commercial banks. -71B-