Azerbaijan Central Bank May Buy $1 Billion in Currency
Central Bank of Azerbaijan Governor Taleh Kazimov announced plans to purchase up to $1 billion in foreign currency by the end of 2026.
The Central Bank of the Republic of Azerbaijan may purchase approximately $1 billion in foreign currency by the end of 2026. Governor Taleh Kazimov stated that the regulator has no specific limit or target for foreign exchange reserves and will continue these purchases provided there is no inflationary risk.
Kazimov noted that the bank has already purchased $3.6 billion this year. While the bank issued an equivalent amount of manats to facilitate these purchases, the governor asserted that this issuance has not yet accelerated inflationary pressures. He further clarified that the bank does not intend to ease current foreign currency purchase and sale rules, maintaining that existing restrictions are limited to monitoring transactions and verifying fund sources.
To shift liquidity toward the interbank market and support lending, the regulator reduced the interest rate paid to banks for attracting funds to 5% on September 23. This move aims to encourage banks to direct surplus funds to one another rather than holding them with the central bank.
