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National Bank of Azerbaijan: Dollar rise is favorable because curbs inflation

12 September 2008 09:46 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. The National Bank of Azerbaijan (NBA) intends to carry out monetary intervention of $2 billion by the end of 2008.
Elman Rustamov, Chairman of the NBA, told APA-Economics that the rise in money supply in the national currency has been below the expectations since early this year.
Money supply M2 rose 20.4% during the first half of the year and 27% during seven months.
He noted that the exact amount of money pullout will depend on the government spending.
â€œThe Government spending is slow so far while we had expected faster rate,â€ he added.
The manat intervention by the central bank may lead to the dollar rise.
Elman Rustamov added that the strengthening of US dollar against manat on the domestic market is favorable for Azerbaijan from macroeconomic viewpoint because it constrains inflation.