Azerbaijan, Baku, 1 November/ Trend , corr I. Khalilova/ The latest seesaws in the rate of USD/EUR have short-term impact on Azerbaijani market, said Rufat Aslanli, deputy director of the National Bank of Azerbaijan said. As of 31 October, the exchange rate of euro contracted to 1, 2706 dollars.
"There has been volatility between rates of dollar and euro in the market recently. The advantage of Azerbaijani market is that this volatility has not affected Azerbaijan," Aslanli said.
The ups and downs in the exchange rate inadequately affect the mutual relations of investors and businessmen.
"The people do not know in what currency to keep their savings and what measures to take for future. Azerbaijan does not face such problems as there is stability in the domestic market. The volatility of USD/EUR currency pairs will have a short-term impact on Azerbaijani market to a very little extent," he said.
The prices in the domestic currency market are determined by supply and demand. The revenues of the country are still high and its constituent part is formed in the foreign currency coming from the export of Azerbaijani goods and services. Money supply in manats is required for the conversion of foreign currency. In case of shortage of money supply in manats, the rate of foreign currency goes down, Aslanli said.
"On the other hand, the economy of the country is integrating into the global economy as revenues are formed in foreign currency. Meanwhile, the rate of the currency affects Azerbaijani economy with foreign ones. If our goods are expensive abroad, they will not be sold, but economy of the country is put on pressure when there are cheaper import goods,' Aslanli said.
Therefore, the NBA pays special attention to currency parity while determining exchange policy. On the background of processes at the world financial markets, the National Bank changed exchange conception and conception on maintenance of cost of manat at bicurrency basket of USD and EUR. At present currency part at the basket is determined in correlation of 30% in Euro and 70% in USD.
Thanks to NBA decision, official exchange rate of national currency to USD was maintained by 4.2% as compared to beginning of 2008 from AZN 0.8453 to AZN 0.8095 for $1 on 31 October, as well as by 16.8% - from AZN 1.2448 to AZN 1.0361 for €1.
Euro rate with respect to USD rate rose within last eight years. However, divergence took place at a rate schedule in autumn 2008 and Euro rate dropped sharply under its influence. As a result, Euro rate was fixed at $1.33. However, within further cut of rate, Euro approached to minimum level, which was observed at $1.25 in 2006.
The same situation was observed at
the currency market in 2005. At that time Euro rate fell sharply, as well.
However, rise of USD rate stopped soon and positive trends for Euro has become
to prevail again. Experts believe that Euro rate will be restored with respect
to USD, whilst Euro rate will slightly rise with respect to USD in future.
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