According to Central Bank of Azerbaijan, in January-June 2017, normalization of balance of payment, regulation of several liabilities of the state sector outside the currency market had a balancing impact on currency market, stabilizing impact on manat rate.
CBA says the USD declined in the second half of February, stabilized in the second quarter.
As of February 1, 2017 the USD rate made up AZN 1.9200, while it was AZN 1.7707 as at the end of 2016. USD rate made up AZN 1.7020 from May 26, 2017 top June 1, 2017. As at the end of the first half of 2017, manat rate increased 3.9%. In the first half of 2017, average exchange rate of USD stood AZN 1.74. Dynamic of bilateral exchange rate also affected the dynamic of multilateral exchange rate in the reporting period. So, Real effective exchange rate of manat on non-oil sector increased 1.4%.
It was also noted that the new exchange rate regime allows Central Bank to preserve its reserves in necessary level: “As of June 30, 2017, central bank’s foreign currency reserves made up $4,964,100,000”.