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CBA carried out manat intervention policy this year

12 November 2010 13:39 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. Central Bank of Azerbaijan directed its policy to keeping the inflation at acceptable level, protection of stability of exchange rate of manat, continue the stable development in banking-financial sector and meeting the demand of economy for money and implemented the duties, in accordance with main directions of monetary policy, CBA Monetary Policy for 2010 reports.

CBA carried out $ 972.5 mln-currency sterilization during the 9 months, 2010. The volume of cash foreign currency brought by banks to the country and net cash exchange operations decreased by 10.6%, during the same period. The exchange rate of manat against USD 0.05% strengthened, during the period of report.

According to official accounting of CBA, stability of exchange rate of manat created useful condition for support of improvement of populationâ€™s social situation.

The nominal rate of manat strengthened against the currencies of other countries, while it cheapened against the currencies of partner countries. The dynamic of nominal bilateral exchange rate of manat influenced on the changing of real bilateral exchange rates. Manat cheapened against the currencies of several countries (Turkey, Ukraine, Kazakhstan, Japan) in real and nominal. The nominal effective exchange rate on non-oil sector increased by 3% during the same period and this has a decreasing impact of inflation.

Inflation in partner countries exceeding inflation in Azerbaijan and this had 0.8 percentage point decreasing impact on the real effective exchange rate of manat. The REER on non-oil sector increased by 2.2% during the report of period.