Improvement in balance of payment and increase in money flow to the country have stabilized the situation in the currency market, head of Central Bank of Azerbaijan Elman Rustamov said at the press conference.
According to him, as a result of macroeconomic policy measures the exchange rate if manat against USD strengthened b 4%.
‘Since the second quarter of 2017, exchange rate of manat has been under pressures of extra strengthening. Stabilization of exchange rate of manat had positive impact on dedolarization processes, financial stability and reduction of inflationary expectations. Real effective exchange rate of manat has gone done by 36% since the end of 2014. This is a factor positively affecting replacement of import and stimulation of non-oil export’, he said.
He also noted that monetary base in manat increased 8.7% in 2017: ‘In the condition that supply was higher than demand, the demand of fiscal sector for liquidity remains key factor affecting monetary situation. In order to meet economy’s demand for money and effectively manage the liquidity, Central Bank keeps the various term frame and open market operations active’.