CBA’s interference in currency market reaches $1.5 bn

CBA’s interference in currency market reaches $1.5 bn
# 27 December 2012 08:46 (UTC +04:00)

Baku. Vahab Rzayev – APA-Economics. In 2012, the Central Bank of Azerbaijan led the exchange rate policy within the corridor of bilateral exchange rates USD / AZN.

According to APA-Economics, due to existence of large-scale surplus in country’s balance of payment, demand exceeded supply in currency market. In order to prevent a significant strengthening of the exchange rate and neutralize its negative effects on the competitiveness of non-oil sector, the Central Bank realized currency sterilization at amount of $1.5 bn.

In general, over the past 15 years the average annual exchange rate of manat against U.S. dollar was less than 1%.

The real effective exchange rate of manta on non-oil sector cheapened by 4.3% within 11 months.

#
#

THE OPERATION IS BEING PERFORMED