Central Bank Lost its currency reserves by 8.0 % in January 2015

Central Bank Lost its currency reserves by 8.0 % in January 2015

Caused by oil price decline in the world market, Central Bank’s intervention costs have decreased since August 2014 in Azerbaijan- Center for Economic and Social Development (CESD) reports. Central Bank Azerbaijan Republic’s (CBAR) currency reserves haven declined to $ 12.681 billion US since the world oil price dropped. CBAR’s currency reserves have decreased by around $ 4.0 billion US since oil price dropped.

Due to intervention costs, CBAR lost its currency reserves only by 8.0 % only during January, the first month of 2015. CESD underlines that CBAR has already stopped dollar sterilization due to decline in the country’s oil income. Alongside that, low oil price will push the CBAR to extend local currency sterilization in up-coming months of 2015.

© CESD, 2015

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