$ 15,7 million lost in monetary reserves of Azerbaijan’s Central Bank

$ 15,7 million lost in monetary reserves of Azerbaijan’s Central Bank

Monetary reserves of the Central Bank of Azerbaijan have started to drop in Q1 2013.

In January 2013, the Central Bank’s reserves were valued at $11,964 billion. In February, the value of the reserves dropped by $15,7 million to $11,948 billion, as of March 1, 2013.

CESD experts believe that the primary reasons for the decreased value of the monetary reserves are two-fold: First, the venture strategy of the Central Bank has been inefficient and conservative, which prevents tangible growing in management of assets.  Second, the appreciation of dollar against euro in February 2013 has contributed to the devaluation because the Central Bank’s cash holdings mainly consist of US dollars. Accordingly, the value of monetary reserves in Azerbaijan is exposed to the fluctuations in the world currency market.

CESD, 2013

 

 

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