Regulatory Alerts2025-01-21
Regulations on Foreign Currency Exchange Operations Between the Central Bank of Azerbaijan and Banks
The Central Bank of the Republic of Azerbaijan issued Resolution No. 49/2 to establish comprehensive regulations governing foreign currency exchange operations and interventions between the central bank and commercial banks. The framework designates the Organized Interbank Foreign Exchange Market as the primary trading platform, sets eligibility criteria for bank participation in auctions, and details direct and competitive bidding procedures alongside out-of-auction transactions. It further standardizes settlement obligations and provides explicit mathematical formulas for calculating exchange rates and premiums across spot, swap, forward, cash-settled non-deliverable forward, and option instruments to ensure manat stability.
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