The increased demand for currency at recent auctions in Azerbaijan is of seasonal nature, the Central Bank of Azerbaijan (CBA) told reporters.
“This is mainly due to the implementation of a number of government projects and import demand from the private sector (including food and agricultural products). For example, supply has exceeded demand in 55 percent of currency auctions held since the beginning of this year. In general, the currency market operates in a balance of payments surplus. The current account is also expected to have a surplus by the end of 2024 if these trends continue," the CBA said.
To note, the CBA held the next currency auction on February 13.
The CBA data showed that demand at the auction amounted to $151.1 million (up 146.09 percent, or $89.7 million, from the previous auction), which was fully met.
The weighted average exchange rate after the sale was 1.7 AZN per USD.
Since the beginning of the year, $788 million has been purchased through currency auctions. The auction on February 13, 2024, saw a maximum demand for foreign currency of $151.41 million. In January 2024, $417.1 million was purchased at currency auctions.
Meanwhile, $3.8 billion was acquired at currency auctions in 2023.
The CBA started conducting foreign exchange auctions through the unilateral sale of foreign currency on competitive terms in the middle of January 2017.
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