The central bank again lowers the rate of the manat to the US dollar (UPDATED)

 The Azerbaijani Central Bank (CBA) has once again lowered the rate of the manat to the US dollar,  and  established it  for f July 1 at the level of AZN 1.5425. At  present the  rate of the manat to the US dollar  is 1.5394 AZN. Reduction of manat to the US dollar has continued for the third consecutive week, without explanation. During this period, AZN has lost more than 3% of the cost. The exchange rate of manat in commercial banks is even lower. Thus, banks buy at the rate of 1,52-1,53 manat per dollar, and sell dollars at the rate of 1.60 manat and above. -02D-

2016 June 30 (Thursday) 13:35:38

Today the State Oil Fund of Azerbaijan (SOFAZ) through an auction organized by the Central Bank of Azerbaijan sold another $ 50 million, this time to 29 financial institutions. In the last four auctions there were, respectively, 32, 24, 28 and 31 (from a total of 37 banks operating in the country).

According to SOFAZ, since April it has exposed not $ 100 million, as before, but half the amount. According to a source in the financial market, the need of banks for foreign currency is much more, and they could buy five times more money than they are given without formalities and credit lines.

In the last ten auctions CBA was not directly involved as a buyer. In general, in June SOFAZ sold about $ 450 million.

According to the Fund management, the sale of foreign currency will continue during 2016. Implementation of foreign currency sale by the Fund is carried out in the framework of the state budget transfers allocated for this year in 7 billion 615 million AZN. By January 1, SOFAZ assets amounted to $ 33.57 billion (minus 9.5% to early 2015).  -- 17D-