Baku, Azerbaijan, Oct. 31
By Azad Hasanli Trend:
The Central Bank of Azerbaijan (CBA) does not intend to give up the floating exchange rate of manat, CBA Chairman Elman Rustamov told reporters in Baku on Oct. 31.
Rustamov said that this regime has proved its effectiveness.
“Azerbaijan plans to constantly use the floating exchange rate regime of the manat. In general, this is required by both the economic realities of the country and international experience. Many countries are now preparing to switch to a floating exchange rate regime,” said the chairman. “The floating exchange rate of manat is the most effective way for maintaining the exchange rate of the national currency and ensuring its stability against negative factors.”
Rustamov also noted that currently, the exchange rate of manat varies freely and does not have a certain corridor within which it could vary.
The manat rate fully operates in floating regime and depends on a number of macroeconomic and external factors, such as the cost of oil, the balance of payments, he added.
The Azerbaijani government switched to the floating manat regime on December 21, 2015. The exchange rate of Azerbaijan’s national currency, the manat, against the US dollar has strengthened by almost four percent since the beginning of 2017, and the exchange rate was set at 1.7002 for Oct. 31.