Central Bank told APA-Economics that SOFAZ foreign currency sales amounted to $4.9 billion throughout the year, down 37.5% from previous year: “Compared to 2016, SOFAZ budget transfers declined three times in 2016. The auctions were a few times in a week, parameters of each auction were announced by Bloomberg terminal. In 2016, total of 114 currency auctions were held at CBA. Depending on the situation in the currency market, the parameters of the auctions were quickly changed, mechanism of these auctions were improved”.
CBA says that in order to create condition for quicker participation of the banks in the auctions, bilateral auction mechanism has been started since October 2016: “the new mechanism allows banks to sell and purchase currency in the auctions. At the same time, interbank currency market also operated normally during the reporting period. Volume of sale and purchase operations outside the auctions tended to increase. Application of the new exchange rate regime allows Central Bank to save its reserves. As of December 30, 2016 foreign currency reserves of the central Bank amounted to $4 billion. This figure exceeded international norms. Official exchange rate of manat was set on the basis of average exchange rate on interbank deals”.