Azerbaijan, Baku, Oct. 31 / Trend N.Ismayilova /
The sharp decline in the exchange of the U.S. dollar against manat last week maybe linked with the growth in the supply, Baku Interbank Currency Exchange (BBVB- BICEX) Head Farhad Amirbeyov told Trend.
"Te currency supply to the exchange increased last week and perhaps depreciation of the dollar was observed due to this," Amirbeyov said.
He believes dollar will return to its previous exchange rate.
"The exchange rate also depends on factors such as international forex, because the Central Bank of Azerbaijan (CBA) uses a two-currency basket, it is important to consider the rate of dollar to euro," he said.
As a result of last week's exchange rate of the Azerbaijani manat to the U.S. dollar, established based on results from the Baku Inter-bank Currency Exchange (BICEX) decreased by 0.0038 (0.38) to 1 U.S. dollar. The average exchange rate was fixed at 0.80122 manat per dollar. The official exchange rate hit the minimum level at 0.7994 manat to $1 on Oct.29.
Last week the official rate of the manat against the US dollar, set by the Central Bank of Azerbaijan, consolidated by 0.0004 points or 0.04 percent. The average rate was established at 0.8009 manat to 1 U.S. dollar.
The CBA has realized the transition to maintaining of the value of manat by introducing the mechanism of two-currency basket comprising the U.S. dollar and euro since March 11, 2008. In 2008, the structure of the basket was determined at the rate of 70 to 30 percent in dollar and euro, respectively, and in 2010 it was changed to the rate of 90 to 10 percent in dollar and euro, respectively.
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