CBA optimizes structure of dual currency basket amid euro rates fall
Azerbaijan, Baku, May 27 / Trend N. Ismayilova /
The Central Bank of Azerbaijan (CBA) has changed the structure of the currency basket, defining it in a ratio of 90 to 10 percent in dollars and euros, respectively, deputy chairman of the CBA Avtandil Babayev said.
The Central Bank made the transition to the maintenance cost of the Azerbaijani manat march 11, 2008, by introducing a currency basket of U.S. dollar and euro. The structure of the basket in 2008 was determined at a ratio of 70 to 30 percent in dollars and euros, respectively.
So far, the manat against the currency basket was regulated with a view of the global and domestic economic processes, and optimization of the structure was carried gradually.
"The Central Bank responded to the volatility of the euro / dollar, and mainly given U.S. dominance in international economic relations of the country. Last year, the CBA passed to the regime of targets in the currency basket while determining the rate of manat," deputy chairman said.
The fall of the euro did not affect the rate of manat. The currency basket was optimized, he said.
The Central Bank also supports the ratio between the manat and the dollar, since it corresponds to the interests of all economic agents of the country.
"Today the rate of manat remains stabile in relation to the dollar, and this policy will continue," Babayev said.
Analysis of the previous period (before the introduction of dual currency mechanism) showed that the introduction of a new concept allowed ensuring a neutral level of nominal effective exchange rate of manat to the currencies of major trading partners in a global inflation. Thus, the introduction of dual currency mechanism enhanced the effect of inflation on import, and reduced the risks of economic agents, conducting operations with the countries of the eurozone, as it allowed neutralizing the vibrations between the rate of manat compared to the euro.