"Report": Commercial banks restricted sale of USD in cash

Baku. 22 August. REPORT.AZ/ A number of commercial banks operating in Azerbaijan restricted sale of US dollars in cash to population.

Analytical group of Report said based on the observations that since August 19, " Yapi Kredi Bank Azerbaijan " CJSC, "Demirbank" OJSC, "Amrahbank", "Bank of Baku" OJSC, again reduced per person limit in sale of dollar cash. Some commercial banks have stopped the sale of the dollar.

Thus, Yapi Kredi Bank Azerbaijan reduced sale of dollar cash from 500 USD to 200 USD, some branches of Amrahbank from 500 USD to 300 USD, Demirbank to 100 USD, Bank of Baku from 500 USD to 200 USD. Notably, the highest per person limit in sale of dollar cash set by "Azer-Turk Bank" JSC (500 USD).

Analytical group of Report believes that, demand for cash dollar may subside by increasing the volume of currency auctions carried out by the State Oil Fund of Azerbaijan Republic SOFAZ on Tuesdays and Thursdays regularly: " The standard volume of currency sold by Fund in auctions is 50 mln USD. Recently, the demand for dollar reached the maximum high in foreign exchange auctions with 700 mln USD. Of course, this amount does not reflect true demand.Commercial banks put forward demands to buy currency as much as possible".

Analysts believe that the real demand for dollar in foreign exchange market is 250-300 mln USD: "In other words, increase in the amount of cash in auctions may calm the foreign exchange market.

The reason for the demand for cash currency is import transactions and process of converting currencies from AZN into USD paid through Azerbaijan Deposit Insurance Fund by banks licenses of which revoked.

Analytical group of Report forecasts resolution of currency market shortages by increasing supply up to 300 mln USD in the upcoming auctions: "As a result, cash dollar sales at commercial banks can shift from 1.6850 AZN / USD rate to 1,63-1,65 AZN / USD.