‘Regulations on Buy and Sell of Foreign Currency between the Central Bank and Banks’ come into force

01-12-2022

1 December 2022, Baku:  The Management Board of the Central Bank of the Republic of Azerbaijan, with its decision dated 15 November 2022, approved the updated Regulation on buy and sell of foreign currency between the Central Bank of the Republic of Azerbaijan and banks. The updated Regulation was included into the State Register of Legal Acts of the Republic of Azerbaijan and entered into force on 30 November 2022.

The updated Regulations have been developed on the basis of sections 6 and 7 of Article 3 of the Law of the Republic of Azerbaijan ‘On Currency Regulation’ and Article 22.0.4 of the Law of the Republic of Azerbaijan ‘On the Central Bank of the Republic of Azerbaijan’ and regulates the order of foreign currency buy and sell operations between the Central Bank and banks.

The Regulations define the methods, form, and conditions of the Central Bank’s foreign currency operations with banks in accordance with the currently used practice. In addition to tools currently in use, the list of tools that the Central Bank can use in the domestic foreign exchange market includes other potential tools that may be used when needed, including forwards, swaps and options. The methodology of price calculation for these tools is also reflected in the Regulations.