CBA: Allegations regarding the depreciation of the manat are unfounded

  • 13:21 12 January 2021

CBA: Allegations regarding the depreciation of the manat are unfounded

The next currency auction has been held in the Central Bank of Azerbaijan (CBA) with the participation of the State Oil Fund, ONA reports citing CBA.

The request in the auction has made up USD 142,2 mln and has been fully provided. Thus, the request in the last currency auction (held on January 7, 2021 - ed.) has increased by 2 times or 71,6 mln dollars in comparison to the previous auction. The weighted average exchange rate of manat stood at 1.7000.

CBA notes that expectation, formed on the background of groundless news, disseminated in media and social networks regarding depreciation of manat in recent days, made a necessary certain requirement in the cash currency market which effected relative increase of demand in currency auction: “Taking into account increase of oil prices in comparison with the previous year, adoption of positive decisions regarding oil production at the latest meeting of the OPEC+, the start of vaccination programs in the whole world against COVID-19, and an important amount of transfers of the State Oil Fund, we note that allegations regarding depreciation of manat are groundless. From this point of view, we think increasing demand regarding cash currency is temporary and it will slacken within a short period of time”.

Bank added that the recent claims on some websites that banks have a problem with the sale of non-cash US dollars and that this is related to foreign exchange auctions are unfounded: “We note that currency auctions are held twice a week by the Central Bank (Tuesday and Thursday) and in these auctions, the requirements of banks for both cash and non-cash currency are fully met."