Azerbaijan may change rules of currency auctions

Baku. 11 March. REPORT.AZ/ Azerbaijan should reconsider the foreign exchange position of banks and management rules of currency auctions. Report informs, the proposal was made by the Chairman of the Board of PashaBank, Taleh Kazimov.

He noted that there may be restrictions on the off-balance sheet instruments and open long currency position.

T.Kazimov also proposed to hold bilateral currency auctions: "Foreign exchange sale should be carried out not only by the Central Bank. It's necessary to create conditions for the fulfillment of the inter-bank transactions."

Chairman of PashaBank added that the Central Bank of Azerbaijan Republic (CBAR) is now negotiating with commercial banks about the current demand for currency: "We work with corporate clients, so we have a high demand for the currency. However, I do not think that the CBAR does not provide the demand. Maybe, any bank wants to buy a $50 million, but its actual demand is $10 million USD. According to the information, Central Bank is in talks with banks that they should apply for the auction in accordance with demand."