The US Federal Reserve’s decision on interest rate may have effect on countries with a large volume of speculative capital inflow in a short period. As Azerbaijan is not a country with a large volume of speculative capital inflow, no short-term change is expected in this country under the impact of the Fed’s decision, Central Bank of Azerbaijan (CBA) told APA-Economics.
The CBA says that this decision does not have a direct effect on manat rate.
‘In general, there is not a fundamental basis for sharp change in manat rate. For the present, the exchange rate of manat depends on demand/supply ratio in the currency market. The demand/supply ratio in the foreign market mainly depends on the condition of balance of payment. As this is at the balanced level, the exchange rate of manat against US dollar is stable’, the bank said.
Yesterday, Fed increased the interest rate from 0.25% to 1.50%.