Headline changed, details added (first version posted on 15:22)
Baku, Azerbaijan, Dec.17
By Azad Hasanli - Trend:
The exchange rate of Azerbaijani manat remains stable against the US dollar, said the message from the Central Bank of Azerbaijan.
"Despite the decision of the US Federal Reserve to increase the base rate to 0.25-0.5 per annum from Dec.17, the Azerbaijani manat preserves the stable dynamics," said the message.
The Federal Open Market Committee (FOMC) of the US Federal Reserve System increased the base interest rate from 0-0.25 percent per annum to 0.25-0.5 percent for the first time since June 29, 2006.
The neutral federal funds rate should gradually move higher over time, reaching 1.5 percent in 2016 and 2.5 percent in 2017, Federal Reserve Chair Janet Yellen said.
Meanwhile, the decision of the Federal Reserve led to decrease in oil prices, while the exchange rate of the US dollar started to rise against euro and other leading currencies. The Central Bank of Azerbaijan has abandoned the manat peg to US dollar rate since Feb.16, 2015 and switched to the mechanism of dual currency basket that includes dollar and euro.
The bank devaluated manat on Feb.21, as a result of which the exchange rate of manat dropped by almost 34 percent and stood at 1.05 manats per US dollar.
Following the devaluation, the exchange rate of manat remained stable and varied within 1.0473-1.0537 manats.
The official exchange rate on Dec.17 is 1.0499 AZN/USD.
Edited by SI