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Official exchange rate of dollar declines to 12-year minimum in Azerbaijan

23 May 2011 08:52 (UTC +04:00)

According to APA, minimal psychological limit (0.8000 AZN/USD) was observed on December 2, 2010.

Note that, AZN 0.79â€“rate was observed on May 9, 1999. Thus, the exchange rate of dollar against AZN reached 12-year minimum.

According to experts of Ekonomist magazine, the reasons of these are not clear and itâ€™s possible only to speak about the suppositions. So that, official exchange rates of foreign currencies in Azerbaijan are determined by Central Bank and cheap dollar is useful for government and Central Bank: â€œIts reason may be different. So that, Central Bank can reduce the exchange rate and purchase many dollars to extend the currency stocks and decrease the dollarization level in economy. Along with this, the government purposely can decide to raise the prices of national currency due to accepting of increase of dollarâ€™s cost as a negative factor and existence of some problems in the economy, by population. Moreover, cheapening dollar is useful for importers and this factor may be assessed as a step in direction of decrease of inflation on import goods.