Vusal Gasimli: "Intensity of currency exchange in banks will decrease on upcoming days"

Vusal Gasimli: "Intensity of currency exchange in banks will decrease on upcoming days"
  • Clock-gray 10:54
  • calendar-gray 13 March 2020

Intensity of currency exchange in banks will decrease on upcoming days, said in a statement Vusal Gasimli, executive director of Economic Reforms Analysis and Communication Center of Azerbaijan Republic, “APA-Economics” reports.

“Currently amount of cash money beyond banks (M0) is AZN 9.3 billion. Every month Azerbaijan’s population implements consumption expenditures in the amount of AZN 300 on average per capital and AZN 3 bln. per month in total. Thus, potential collection in manats is limited for performing currency exchange in banks. Intensity of currency exchange in banks will decrease on upcoming days. Because the population’s monthly expenditures equal to 1/3 of cash money stock. In other works the population needs a part of cash money in order to provide current consumption, and these funds are not needed to be exchanged for US$. During this week, at three currency auctions held at the Central Bank with participation of the State Oil Fund as well, on average US$ 700 million were sold to banks. Moreover, demand for currency further decreased at every consecutive auction as compared with the previous auction. This means that in upcoming weeks, especially if we take into account that Novruz holiday shopping will also be executed in AZN, the frequency of exchange of AZN for US$ will become slower.”

Narmin Rahimova

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