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CBA sterilizes about $1 mln.

05 November 2012 08:52 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. In January-September, 2012, the Central Bank of Azerbaijan has conducted its exchange rate policy within the framework of targeting of dollar/manta bilateral exchange rate, APA reports quoting Monetary Policy Report, made by CBA on January-September, 2012.

According to report, in currency market, the supply exceeded demand in the condition of existence of surplus in the balance of payment. However, to prevent significantly strengthening of exchange rate and by this, neutralize the negative impacts on competitiveness of non-oil sector, the Central Bank sterilized $978 mln during 9 months of 2012. Consequently, exchange rate of manatee against dollar strengthened only 0.17%. According to calculations of Bank, stability of exchange rate of manat had a positive impact on macroeconomic environment and stability of financial sector.

In general, the CBA has conducted its policy in the condition of increase of risks in eurozone and changes in world financial and commodity markets. Countryâ€™s foreign economic position was favorable on the background of high oil price in the world markets. Increase of strategic currency stocks raised economic durability and reached the level than could neutralize global economic risks.

The report says during the period, the Central Bank conducted quick-adequate policy by controlling the factors influencing mecroeconomic and financial stability. CBA has directed its activity to the realization of targets such as saving of inflation at optimal level, stability of exchange rate of manat, strengthening of growth and durability in banking-financial sector.

Central Bank has conducted anti-inflationary monetary policy taking the rise of global commodity prices and extension of domestic demand. Consequently, exchange rate of manat remained stable and inflation was at single-digit level.