Baku. 28 February. REPORT.AZ/ At today’s currency auction jointly held by Central Bank of Azerbaijan (CBA) and State Oil Fund (SOFAZ) 34.12 mln USD (97.5%) of offered 35 mln was demanded by commercial banks.
Report’s expert group believes that demand in US-dollar will remain stable until the year end. The possible reasons are reduction of fiscal charges and sterilization of manat flow by CBA. Notably, despite increase of USD exchange rate in today’s auction, commercial banks continue to reduce cash sale prices. “We can expect maximum approximation of CBA official exchange rate with selling price of commercial banks. This shows that CBA is determined to prevent currency speculation and establish stable exchange rate by using various financial tools.”
Experts believe, USD exchange rate will probably stabilize at 1.75AZN/USD by the year end. Exchange rate may change in 2018 depending on changes in oil prices. The main objective of CBA now is to stimulate economic growth, which seems a bit difficult in current circumstances. “Thus, the speed of economic growth is related with resumption of lending by bank sector. Resumption of lending in its turn is related to stability of exchange rate of manat. Apparently, administrative measures are preferred for stabilization of manat’s exchange rate, and expanded scale of sterilization proves this”, experts say.
Report’s expert group recommends to potential investors aiming at increasing profitability to transfer their free assets into short-term manat deposits within circumstances of stable exchange rate of US-dollar.