MP: Manat rate directly depends on CBA decisions

12:54 - 6.12.2023

December 6, Fineko/ The demand for dollars is growing again at currency auctions, ABC.AZ reports, quoting MP and economist Vugar Bayramov.

He added that $241.1 million has been sold in the last 3 auctions: "On the other hand, in the last 3 auctions, each sale was more than the previous one. If $68.2 million were declared at the auction held on November 28, then on the last day of last month - $77.8 million, and yesterday - $95.1 million."

The MP noted that the growth in demand for dollars is largely conditioned by seasonal factors: "So, in December, the demand for foreign currency from both businesses and citizens is growing. The demand for the dollar was expected to increase in December. Thus, the presence of the last month in the current financial year on foreign debt obligations of state and private enterprises, as well as banks, an increase in imports, and foreign trips due to holidays increases the demand for dollars."

Bayramov noted that regarding the change in the manat rate in the context of the growing demand for the dollar, it has not yet been switched to floating exchange rate in Azerbaijan: "Practically, the exchange rate of the manat directly depends on CBA’s decisions. The Central Bank retains the possibility of direct intervention in the process. Therefore, how the exchange rate of the manat will change next year will directly depend on the position of the CBA."

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