Azerbaijan to fully move to floating manat rate in 2017
Baku, Azerbaijan, Dec. 9
By Azad Hasanli – Trend:
The Central Bank of Azerbaijan (CBA) will ensure a full shift of manat to the floating rate in 2017, said the “Strategic Road Map for the Prospects of the National Economy of the Republic of Azerbaijan.”
According to the document, the floating manat rate, set on December 21, 2015, is valid in Azerbaijan today.
“One of the conditions of the shift to the floating manat rate is the development of domestic financial markets, the introduction of hedging instruments and other instruments of insurance against exchange rate risks,” the document said. “A strategy for CBA’s intervention in the foreign exchange market and the CBA’s effective communication with market participants will be also prepared.”
In general, according to the road map, the effectiveness of the monetary and exchange rate policy will be increased.
Another important feature of the road map is the introduction of a principle aimed at reducing the volatility of GDP and helping the Finance Ministry simplify forecasting the exchange rate of manat.