Central Bank: Azerbaijani domestic currency market's activity keeps high level in 2009

Business Materials 29 March 2010 16:25 (UTC +04:00)

Azerbaijan, Baku, March 29 / Trend N. Ismayilova /

The rate of Azerbaijani manat reduced by 0.29 percent compared to the U.S. dollar during 2009, the Central Bank of Azerbaijan said.

"Last year, the country's foreign exchange market was subject to pressure from unfavorable price conjuncture in the international markets, increase of costs for external liabilities of the banking system and devaluation observed in the neighboring countries," the report said.

However, these factors have been neutralized as a result of targeted interventions of the bank. During the year a stable national currency was maintained. More pressure on the rate of manat was observed in January-March last year.

During 2009, the activity of members of domestic foreign exchange market remained at a high level. The volume of transactions on the market amounted to $31.8 billion.

Despite that a 15 percent decline was observed in transactions between banks and customers (off-exchange segment of the foreign exchange market) in 2009. A 41-percent growth was observed in the interbank segment (exchange).

"Thus, the exchange rate policy of the bank became the core of the state anti-crisis policy and allowed to maintain financial stability in the country," the report said.