Baku. Musa Ahmadov – APA-Economics. On the background of decline of foreign currency supply and increase of demand, the Central Bank’s exchange rate policy during the nine months of 2015 was conducted within the strengthening of international competitiveness and preservation of macroeconomic stability, APA-Economics reports quoting Central Bank’s Monetary Policy Outlook for 9 months of 2015.
According to the outlook, oil price decline and devaluation waves in the partner countries caused increase of demand for foreign currency, especially USD: “In 9 months of 2015, the currency market increased 1.8 times compared to a year earlier. 91% of operations have been carried out in USD, 9% in other currencies. USD operations rose 1.8 times, Euro operations – 2.1 times”.
Net cash foreign currency sold by banks to the population in USD raised 61.7%: “Demand for cash foreign currency mainly increased in the first quarter. So, 63% of net USD, 38% of Euro were sold in the first quarter”.
Central Bank’s operations in the currency market were carried out within the intervention corridor (diapason between sale and purchase rates). CB’s currency operations were directed to sale in six months, to purchase in three months. During the reporting period, nominal bilateral exchange rate of Manat went down in comparison to the partner countries except Kazakhstani Tenge, Ukrainian Hryvnia and Belarus Ruble.
Dynamic of nominal bilateral exchange rates of Manat influenced change of real bilateral exchange rates and this influenced change of real effective exchange rates. Real effective exchange rate fell 15% through decline of nominal effective exchange rate 12.1%. Real increase of Manat occurred in 2013-14 was neutralized in the nine months of 2015. Decline of real effective exchange rate is a factor, that has positive impact on competitiveness of non-oil sector, compensates import and stimulates development of export spheres.
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