Monetary policy is expected to focus on inflation control but still support economic recovery, APA-Economics reports citing Asian Development Bank.
"Broad money is projected to rise from continued fiscal stimulus and resumed growth in credit to the private sector. The exchange rate should remain stable as a renewed trade surplus takes pressure off the manat.The central bank will closely monitor the foreign exchange market and use deposit auctions and its own short-term note issues to keep liquidity adequate but not excessive.
Decreased demand for imports and regular deposit auctions by the central bank to reduce liquidity helped the Azerbaijan manat hold its value against the US dollar but not against the euro or the Japanese yen.
Meanwhile, the manat appreciated by 6.3% in trade-weighted nominal effective terms and by 4.1% in real effective terms, taking into account higher inflation rates in trade partners," it was noted.