BAKU, Azerbaijan, September 18. Trade-oriented intervention in the currency market is possible, TurkicWorld reports via the statement of the Central Bank of Azerbaijan (CBA).
"The increase in demand for foreign currency, associated with the rise in direct foreign currency expenditures by the state (including servicing external public debt) over the past eight months, as well as the reduction in obligations on trade credits by enterprises operating in the country, were fully covered at currency auctions organized by the CBA.
For the remainder of the year, trade-oriented currency market interventions by the Central Bank are not ruled out, with the goal of supporting the government's increased direct foreign currency expenditures (COP29 and other state spending).
These operations will be carried out using foreign currency acquired as a result of the $4.2 billion purchasing intervention made by the CBA in the currency market from 2022 through 2023. The expected currency intervention, focused on sales, will also allow for the sterilization of part of the increased money supply resulting from purchasing interventions in previous years," the statement said.
