TODAY.AZ / Business

Banks restore dollar sale

28 June 2016 [17:19] - TODAY.AZ

/By Azernews/

By Nigar Abbasova

Financial market Supervisory Board has made a warning in connection with the suspension of dollar sale by some banks after a relevant monitoring held on June 25.

Banks which created artificial obstacles for the currency sale were punished as a result of the inspection. Following the actions taken by the Board all banks restored the currency sale process.

Experts related the suspension of the currency sale with the panic in the global financial markets over Brexit. “Decline in the pound rates has triggered strengthening of USD rates. In this regards banks treated the situation with some caution.”

The situation has caused a sharp increase in the demand for the currency which in its term triggered USD shortage.

A number of commercial banks including branches of Bank of Baku, Zaminbank, Kredobank has suspended the USD sale, Report.az said. Some of the banks have put a limit on the amount of the currency for sale.

Previously CBA reported that the exchange rate fluctuations that occur in connection with the UK’s decision to leave the EU have no impact on the formation of the exchange rate of the U.S. dollar to Azerbaijani manat. The U.S. dollar rate to Azerbaijani manat is defined on the basis of the ratio of supply to demand in the local foreign currency market.

Majority of the Bank’s reserves which amounts to approximately 85 percent falls to a share of USD therefore fluctuations in the rates of other currencies in relation to USD does not lead to significant exchange difference, CBA reported.

Commercial banks are eligible to sell currency with the difference of up to 4 percent in comparison with the official rate established by the CBA.

The supervisory board is aimed at providing all necessary measures to preserve financial stability in the country. The Board is engaged in the management and regulation mechanisms of the country's financial market, pursues a unified policy and regulatory standards on the financial market.

Britons held a referendum June 23. Campaign to leave the EU, known as the Brexit, has won with 51.9 percent of the votes.

Official exchange rate of the U.S. dollar, euro and British pound to Azerbaijani manat was set at 1.5332 manats, 1.6960 manats and 2.0385 manats respectively, on June 28.

URL: http://www.today.az/news/business/152166.html

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