Azerbaijan, Baku, Nov. 6 /Trend A.Akhundov/
To prevent a significant strengthening of manat, and thereby neutralizing the negative impact on the competitiveness of non-oil sector in the first three quarters of 2012 the Central Bank of Azerbaijan (CBA) held the sterilization of the currency in the amount of $978 million.
This is stated in the report of the Central Bank on monetary policy in the first nine months.
"This year, the Central Bank continued its exchange rate policy in the framework of bilateral targeting of the dollar/manat. The offer in the foreign exchange market has exceeded demand under the conditions of a large surplus in the balance of payments in the country," a report said.
In January-September 2012, the exchange rate of the manat compared to the U.S. is strengthening at 0.17 percent. Stability of the national currency had a positive impact on the stability of macroeconomic and financial sector.
In the reported period, the exchange rate of manat to currencies of some countries - the United Kingdom, Turkey, Georgia, China, Belarus and South Korea - fell both nominally and really. As to the currencies of the US., the eurozone, Russia, Ukraine, Iran, Kazakhstan, Japan, and Israel the exchange rate of manat raised nominally, but fell really.
In January-September, the nominal effective exchange rate (NER) of manat on non-oil sector in total trade rose by 0.7 percent. Inflation in the partner countries contributed to a decrease in the real effective exchange rate (RER) by 5.9 percentage points. REC on non-oil sector fell by 5.2 percent.
"Thus, the Central Bank has provided a stable bilateral exchange rate of manat and dollar in the period. Multilateral rate of manat fell, which is a positive factor in improving the competitiveness of non-oil sector," the report says.