BAKU, Azerbaijan, October 10. The reduction of inflation is possible due to the stable exchange rate regime, the Chairman of the Central Bank of Azerbaijan (CBA) Taleh Kazimov said, Trend reports.
"We have been focused on preventing excess demand, especially for a year and a half. We have tightened monetary policy and also taken measures to tighten our macroprudential requirements," Kazimov said.
He noted that central banks around the world are trying to control demand and inflation.
"They can influence demand inflation by changing the discount rate. The observations carried out over the past three years show that inflation in Azerbaijan and in most of our trading partners is growing due to the rise in world food prices. Rising inflation from our trading partners is imported to us. Therefore, the CBA cannot do anything here,” he said.
“The bank's reducing effect on inflation becomes possible mainly due to the stable exchange rate regime. The CBA uses the nominal effective exchange rate very actively in its communications, calculations, and forecasts. The nominal effective exchange rate is the ratio of the Azerbaijani manat to the currencies of trading partners," Kazimov said.