No currency denomination expected in Azerbaijan (UPDATE)
Details added (first version posted on 13:21)
Baku, Azerbaijan, Jan. 19
There are no economic and social reasons for denomination of national currency in Azerbaijan, the head of the Central Bank of Azerbaijan Elman Rustamov told reporters Jan.19.
"Today, the ratio of our manat rate against other currencies is fully understandable," Rustamov said. "Denomination is carried out to reduce the number of zeros in the national currency. There are no reasons for denomination also because of the lack of hyper-inflation in Azerbaijan."
In the result of the national currency denomination [full transition to new scale of prices was held in 2007] carried out by the Central Bank of Azerbaijan, complete replacement of old banknotes for the new ones was completed before December 31, 2006. Since 2007, only the new bills are used in Azerbaijan as a means of payment, which made it possible to prevent problems that trade and economic entities might have in connection with the presence of bills of 19 face values at the same time.
The period of operation of banknotes is three to five years, coins - 20 years.
Today, most of the burden falls on banknotes in one and five manats. Their lifetime is 1.5-2 years, as they deform faster because they are used more frequently. Therefore, the Central Bank of Azerbaijan considered the possibility of producing metal coins of large face value in order to reduce the burden on them and cut the costs of the bank.