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Exchange rate of dollar remains stable due to Azerbaijanâ€™s refusing bicurrency basket in exchange rate policy

25 January 2011 15:09 (UTC +04:00)

According to APA-Economics, on January 10, 2011, the Central Bank of Azerbaijan has adopted a decision about switching to targeting of dollar/manat bilateral exchange rate within the framework of improvement of application mechanism of exchange rate policy.

Remind that, CBA has realized the exchange rate policy via targeting of bicurrency basket value which includes Euro and dollar, from March 2008 to January 10, 2011. This mechanism has increased the control to multilateral exchange rate of manat. But, the becoming of changes in leading currency rates strained, devaluation of national currencies by developing countries and new situation with priority of financial stability target made the exchange rate policy to be changed.

Thus, dollarâ€™s refusing the basket principle has created opportunity to determine the dollarâ€™s exchange rate against manat. The exchange rate of dollar against manat has changed from AZN 0.7976 to AZN 0.7974. This can be assessed as stability. At the same time, Euroâ€™s rate against manat rose from AZN 1.0294 to AZN 1.0891.