The denomination of manat will lead to increase of inflation in the country. Though the denomination is not decisive factor of inflation, it will exert short-term negative impact on the economy of the country, Heydar Babayev, the chairman of the State Committee on Securities, told Trend. вЂњIt will not affect on the securities market.
The Committee currently carries out work arising from PresidentвЂ™s decree on denomination of manat. Despite the correlation of 5,000 manats causes some difficulties, none of them is insuperable,вЂќ Babayev underlined.
As to the issue of mid-term and long-term bonds along envisaged in the PresidentвЂ™s decree, Babayev stressed that they worked in this direction. вЂњIt is impossible to regulate the market only by short-term bonds. We must generate interest to other bonds.
The policy must base on the changes taken place at the market. We work jointly with the Finance Ministry in this direction,вЂќ the chairman of the committee stressed.
Babayev also noted that the incomes got from the short-term bonds for short time ensure interest to them. But people refrain from long-term bonds due to their long term. Nevertheless, the Committee plans to issue mid-term and long-term bonds, and will conduct a check-up in this regard.