BAKU, Azerbaijan, December 28. The Central Bank of Azerbaijan (CBA) has made a statement on the main directions of monetary policy for 2024, member of Azerbaijan's Milli Majlis (Parliament) Committee on Economic Policy, Industry and Entrepreneurship Vugar Bayramov said on social media, Trend reports.
"Analysis of the document shows that next year the manat exchange rate will depend on the state of the balance of payments, and more precisely, on the oil price," he said.
He emphasized that although the currency supply and demand of the fiscal sector, as well as exchange rate expectations of economic entities are grouped as the main factors affecting the balance in the foreign exchange market, it is clear that these indicators will also directly depend on the volatility in the energy market.
"On the other hand, the Central Bank predicts that the nominal effective exchange rate of the manat will limit the import of inflation. Considering its important role in managing inflationary processes, the bank will also intensively monitor the dynamics of the nominal effective exchange rate in 2024," Bayramov noted.
"As seen in the document, even next year our oil revenues will be the main factor affecting the manat exchange rate. The Central Bank's statement that it will intervene in the foreign exchange market if necessary to achieve operational objectives on exchange rate policy suggests that it may use foreign exchange reserves in case of serious volatility in the energy market. And this means that the manat exchange rate next year will directly depend on the position of the Central Bank," Vugar Bayramov added.
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