National Bank suggests further manat reinforcement to USD by 2007

Business Materials 24 June 2006 11:13

National Bank of Azerbaijan states the possibility of forecast excess on national currency reinforcement to USD by the end of 2006.

В"Originally we forecasted USD cheapening at 6-8%, but budgetary forecasts and oil&gas projects incomes adjustment gave us the grounds to suggest two-digit reinforcement of manatВ", - Trend reports quoting Alim Guliyev, first deputy chairman of NBA.

Guliyev said forecasting is a sophisticated process. It shall account for adjustment of state budget forecasts, economic development, which results in impossibility to say whether the reinforcement will become one- or two-digit, it depends.

According to the recent statement by NBAs chairman Elman Rustamov, inflation growth schedules in other oil producing countries like Kazakhstan and Russia outpace those in Azerbaijan.

В"We are analyzing the situation with reinforcement of nominal manat rate related to those of main partners of our country. During the past 5 months, level of inflation in the country and national currency rate did not lead to aggravation of non-oil sector of Azerbaijan. Inflation rates of our foreign trade partners are higher, resulting in manat effective rate stabilityВ", - Rustamov said.