Baku, Azerbaijan, May 10
By Anvar Mammadov - Trend:
After Azerbaijan switched to a floating exchange rate of manat [starting from December 21, 2015], the main objective of the country's central bank has become forecast of money supply [volume], head of the bank Elman Rustamov told reporters May 10.
"This makes it possible for us to influence both inflation and the exchange rate of manat via money supply," Rustamov said.
He went on to add that the Central Bank of Azerbaijan (CBA) already has certain objectives for late 2016.
"We already have certain objectives both in terms of inflation and financial stability figures and macroeconomic stability as a whole," said Rustamov.
He went on to add that a very good and coordinated monetary and macroeconomic policy is currently held in Azerbaijan.
"This policy is well coordinated with the relevant bodies, especially with the ministry of finance," said Rustamov.
It was earlier reported that inflation in Azerbaijan in 2016 is forecast to be at 10-12 percent.
It is envisaged in the updated concept of socio-economic development, prepared by the Azerbaijan's Ministry of Economy.
The inflation in the country in 2015 amounted to 4 percent, in 2014 - 1.4 percent, in 2013 - 2,4 percent, in 2012 - 1,1 percent, in 2011 - 7,9 percent, in 2010 - 5,7 percent. Food prices grew by 6,1 percent last year, non-food prices - 3,8 percent. Tariffs for paid services increased by 1,2 percent.
As a result of the two devaluations of manat the currency cheapened by almost 100 percent last year.