IMF COUNTS ON SINGLE-DIGIT INFLATION RATE IN AZERBAIJAN
The International Monetary Fund (IMF) plans that on the results of 2005 it will be possible to regulate the inflation processes in Azerbaijan, having retained the inflation rate within the one-digit index, the IMF deputy managing director Augustin Carstens stated on 22 July in Baku at the briefing with journalists, Trend reports.
Carstens underlined especially that Azerbaijan has managed already to lower the inflation rate from 15 % to 13 % level, voicing the hope that the inflation rate will not exceed the 10% line.
According to the IMF representative, the AzerbaijanвЂ™s authorities take currently appropriate measures for that.
In particular, strengthening of manat by interest rates increase is admitted. With all these, Carstens underlined, that strengthening of manat is the objective process, defined by a large currency flow, converted in the Azerbaijani manat. Thus, demand for the Azerbaijani manat grows and it gets more expensive, which is a long-term process.
According to the IMF deputy managing director, it is an objective process, and retaining the manat rate by means of intervention or additional accumulation of currency reserves would be artificial.