Azerbaijan’s Central Bank foreign exchange reserves grow by over 10% in four months
Baku, May 6, AZERTAC
During the first four months of 2026, Azerbaijan's foreign exchange market saw supply consistently outpace demand across both cash and non-cash segments. According to the Central Bank’s latest statement on policy rates and interest rate corridor parameters, this trend has significantly bolstered national reserves.
Preliminary figures indicate that from January through April, cash foreign currency purchases by exchange offices exceeded sales by $190 million. This shift is accompanied by a steady decline in "dollarization" – the ratio of foreign currency deposits held by resident individuals fell by 2.1 percentage points over the last year, reaching 28% in March 2026. This trend highlights growing public confidence in the national exchange rate.
In response to a sharp decrease in demand during April’s foreign exchange auctions, a market surplus emerged, leading the Central Bank to engage in buy-side interventions. Consequently, the Central Bank’s foreign exchange reserves rose by 10.2% during the first four months of the year, reaching a total of $12.7 billion.
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