BAKU: Azerbaijan's central bank said on Thursday it had banned the sale of foreign exchange in stand alone bureaux de change operated by commercial banks, part of a push to support the oil exporter's faltering currency, the manat.
The move, outlined by a spokesman for the bank, comes as low oil prices exert severe pressure on the public finances and currencies of oil-dependent countries in the former Soviet Union such as Azerbaijan.
Azeri authorities withdrew support for the manat on Dec. 21 after burning through over half the country's foreign currency reserves in an effort to defend it against the impact of falling oil prices. That triggered a plunge of 32 percent against the dollar.
The central bank earlier this month widened the exchange rate corridor within which banks can buy and sell the manat to 4 percent either side of its official rate from 2 percent.
On Wednesday, the bank set an exchange rate of 1.5706 manats per U.S. dollar. It said that would stay in place until Jan. 15. Many currency exchange booths in the capital, Baku, have already stopped operations. One owner of an exchange bureau told Reuters he had closed three days ago on the central bank's orders.
"The central bank sent a letter with an order to close all bureaux de change," said the owner, who declined to be named.
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