Central Bank interventions prevent extreme rise of manat in 2011
Azerbaijan, Baku, November 12 / Trend, N. Ismailova /
The Central Bank of Azerbaijan (CBA) in first 3 quarters of 201 sterilized currencies in the amount of $497 million, the CBA reported in a money policy report publicized on Friday.
Since the beginning of 2011 the CBN pursued its exchange rate policy in the conditions of an increase of money supply on the currency market, and a new operating mechanism. As the report reads, strengthening of the exchange rate of manat was observed in period; however, the CBA sterilized the currencies to prevent an extreme rise of manat's exchange rate, something that may affect negatively the competitiveness of the non-oil sector.
In 3 quarters of the year, the exchange rate of manat to US dollar raised by 1.4 percent. The stability of national currency during the period contributed positively to the stability of macroeconomic and financial sectors.
In 3 quarters of the year, the nominal effective exchange rate (NER) of manat to currencies of some countries - Azerbaijan's trade partners - raised but at the same time NER of manat to currencies of some other countries fell. The change of NER of manat also caused change of the real effective exchange rate (RER).
In the reported period, the exchange rate of manat to currencies of some countries - Eurozone countries, Georgia, Japan, China, and South Korea - fell both nominally and really. As to the currencies of the US, UK, Turkey, Ukraine, Israel, and Belarus, the exchange rate of manat raised both nominally and really.
In first 3 quarters, the NER on the non-oil sector raised by 3.4 percent in total trade turnover. Inflation in partner countries caused fall of the RER by 1.5 percent. The RER on the non-oil sector raised by 1.9 percent.