Azerbaijani Central Bank to change exchange rate policy
Baku, Azerbaijan, Feb.16
The Central Bank of Azerbaijan (CBA) from Feb.16 will switch from determining the bi-currency exchange rate to targeting the currency basket value.
That's to say, CBA will abandon the AZN peg to the US dollar.
This decision was made based on the decision of the CBA board, a message from the bank said on Feb.16.
"It was decided to pursue the exchange rate policy based on the bi-currency basket mechanism which includes the US dollar and euro," said the message. "This is while CBA will continue participating in the country's currency market within a certain currency corridor."
The new operational frameworks will create conditions for the gradual adaptation of economic entities and ensure the flexibility of the exchange rate policy and macroeconomic efficiency.
The official exchange rate of AZN to US dollar has remained stable at 0.7844 AZN since Dec.18, 2014. Starting from Feb.16, 2015, the US dollar grew by 0.05 percent and currently stands at 0.7848 AZN/USD.