Details added (first version posted on 09:15)
Baku, Azerbaijan, Dec. 29
In 2018, the Central Bank of Azerbaijan (CBA) will maintain a floating exchange rate, given the ability to effectively absorb foreign shocks, said the bank's message.
“The Central Bank can, in small and limited volumes, intervene in the foreign exchange market in order to prevent short-term changes in the national currency rate, which are not a consequence of fundamental macroeconomic factors,” says the statement.
According to the Central Bank, stability on the currency market of Azerbaijan will be provided in 2018 thanks to the projected transfers of the State Oil Fund (SOFAZ) and the balance of payments.
“The long-term trend of manat’s exchange rate is formed by these fundamental macroeconomic factors. The optimization of foreign currency control is also important for the long-term stability of the foreign exchange market,” says the statement.
The Central Bank intends to continue the conservative monetary policy in 2018, taking into account the relative softening in fiscal policy. To this end, the Central Bank will ensure the formation of adequate monetary conditions.