Weekly review of Azerbaijani currency market

After the Central Bank shifted to bilateral targeting of the dollar/manat from Jan. 10, 2011, exchange rate of the national has stabilized. Macroeconomic analysis showed that bilateral targeting of dollar/manat corresponds with the objectives of the Central Bank, particularly in influencing the inflation rate. In terms of communication, this mechanism is not only beneficial, as this will allow the CBA to move to the regime of freely floating exchange rate in the long term.

As a result of last week's exchange, the rate of the Azerbaijani manat to the U.S. dollar, established based on results from the Baku Inter-bank Currency Exchange (BICEX) remained unchanged at 0.79 manat to $1.

Deals concluded last week at BEST with transition to currency (T+0) comprised: May 16- $ 1.81 million with exchange rate of 0.79 AZN/USD, May 17- $4.27 million with exchange rate of 0.79 AZN/USD, May 18 - $0.874 million with exchange rate of 0.79 AZN/USD, May 19 - $0.842 million with exchange rate of 0.79AZN/USD and May 20 - $1.079 million with exchange rate of 0.79AZN/USD.

No deal was concluded with USD/AZN T+1 and T+2 due to too few appeals by dealers. Appeals were not received on RUB/AZN and EUR/AZN.