A surplus in the current account of the balance of payments, along with continued de-dollarization in the financial sector, has pushed foreign currency supply above demand in the foreign exchange market, according to the Central Bank of Azerbaijan.

Axar.az informs that against that backdrop, the Central Bank purchased $1.5 billion in foreign currency through market interventions in August. As a result, the Central Bank’s foreign exchange reserves have increased by $3.8 billion (33%) to a record $15.3 billion since the beginning of the year.

Depending on market conditions, the Central Bank may reintroduce some or all of the foreign currency it has purchased into the market during the remainder of the year to help maintain market equilibrium.

If the Central Bank conducts additional foreign exchange purchases or sales to safeguard macroeconomic stability, it will publicly disclose those operations.