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CBA sterilizes $500 mln this year

14 November 2011 09:19 (UTC +04:00)

According to Review, the CBA has realized its policy within the targeting of dollar/manat bilateral rates.

Large surplus, strengthening of manat as a result of usage of oil incomes for economic development were observed in the balance of payment. The Central Bank realizes currency sterilization to prevent the strengthening of rate and neutralize the negative influences on competitiveness of non-oil sector.

Consequently, rate of manat against dollar was strengthened by 1.4% during the accounting period. Stability of rate of national currency influenced the stability of macroeconomic and financial sector in the country.

Nominal rate of manat went up in comparison with several countriesâ€™ currencies, while it went down compared with some countriesâ€™ currencies. Nominal bilateral rate dynamics of manat influenced the changing of real bilateral rates. Manat went down really and nominally compared to the currencies of several countries (Eurozone, Georgia, Japan, China, and South Korea). At the same time, it went up really and nominally in comparison with US, UK, Turkey, Ukraine, Israel and Belarus.

Nominal effective rate on non-oil sector (on total trade circulation) rose 3.4% during the same period. The difference between the inflations of Azerbaijan and partner countries had a decreasing impact on real; effective rate by 1.5 percentage points. Consequently, the real effective rate of manat on non-oil sector went up 1.9% during the same period.

Thus, the marjet operated in the self-regulating regime and bilateral rate of manat remained unchanged during the period.