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Central Bank of Azerbaijanâ€™s foreign assets dwindle

15 May 2009 15:32 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. As of May 1, The Central Bank of Azerbaijan posted its international (external) assets at AZN 4 165.6 million, down AZN 476.2 million and 10.3% from a year ago.

According to statistics, external assets decreased by 19.6% or AZN 1 014.6 million during January-April this year, - AZN 45.6 million in January, AZN 323.3 million in February, AZN 621 million in March and AZN 24.7 million in April.

The decrease during four months running accompanies the rapid accumulation of assets over the recent year. Total foreign assets doubled in 2006, increased by 66% in 2007 and 43% in 2008.

There are several factors which could probably erode assets.

The central bank loosened monetary policy and slashed refinancing rate to allow commercial banks an access to funds.

Against the backdrop of currency devaluation in neighbouring Russia, Kazakhstan, Armenia, Ukraine and other countries amid he global financial crisis, Azerbaijan poured money to keep up the home currency.