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Events with Russian Course Policy Will not Affect Currency Market of Azerbaijan BICE Head

Politics Materials 30 October 2006 12:48 (UTC +04:00)
Events with Russian Course Policy Will not Affect Currency Market of Azerbaijan  BICE Head

The recent events with the Russian course policy will not affect the currency market of Azerbaijan. The Central Bank of Russian Federation has not been purchasing dollars in the market for already a month, and this is justified through the fall-off the oil prices.

The contracts have not been concluded over the ruble and euro in the exchange market, the Head of the Baku Inter-Banks Currency Exchange (BICE) Farhad Amirbeyov exclusively told Trend. Today the defined course factor is the situation of the trade balance.

Azerbaijan National Bank (ANB) is continuing the policy to strengthen manat, and testing the pressure from the petrodollar. Even in the case of the drop of oil prices (today the prices varies between $59-61 per 1 barrel of oil), ANB will continue to fill up its gold and exchange currency reserves due to the great demand for manat and this will lead to the manat strengthening.

Russia is not only the oil producing country. It also considers the possibilities of changing its course policy. Irrespective of the incomes from oil, the teng (Kazakh currency) began to turn weak with respect to American dollar in Kazakhstan since July 2006. In all of the cases, the main motives of changing the course policy are necessary to support the local producers.

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