Exchange Rate Policy on Two-Currency Basket Applied in Azerbaijan

Business Materials 11 March 2008 18:46 (UTC +04:00)

Azerbaijan, Baku, 11 March / corr. Trend I. Khalilova/ The Board of Directors of the National Bank of Azerbaijan (NBA) decided on 11 March to begin implementation of the Conception on Maintenance of the Cost of the Manat at a Stable Level relative to Currency Basket, NBA said on 11 March. The two-currency baskets consisting of the US dollar and euro will be introduced in the early stage. The share of the two currencies will change by stages.

By its decision NBA tries to achieve the optimal structure of the basket taking into account the role of the leading currencies of the world in foreign economic relations of the country. These measures are being carried out within the improvement and formation of a currency policy in order to ensure macroeconomic stability.

Frequent changes in exchange rates of leading world currencies and of Azerbaijan promoted the significance of the exchange policy. These changes together with the import of inflation, subjects economic bodies of the country to risk.

As of 1 March, the currency reserves of Azerbaijan at the NBA disposal totaled to $4,015,500.