Finance

Finance

Central Bank of Azerbaijanâ€™s foreign exchange reserves decline

11 August 2009 11:30 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. As of August 1, the Central Bank of Azerbaijanâ€™s official foreign exchange reserves stood at US$4 787 million, down 8.4% or $436.7 million from a year ago.

According to statistics, foreign exchange reserves diminished by 22% or $1 250 million during January-July and 5.8% or AZN 293.7 million in July alone, said the Central Bank of Azerbaijan.

The decrease during four months running accompanies the rapid accumulation of currency reserves over the recent years.
There are several factors which could probably erode assets.

The central bank loosened monetary policy and increased market intervention by pouring foreign currencies into the market.

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

The decrease in foreign exchange reserves has been common for many central banks across the world.