Samir Sharifov, the Azerbaijani Finances Minister, stated that the Azerbaijani Government and the National Bank are taking measures to hold in check an additional currency mass so as not to allow the acceleration of consolidation of the manat. The consolidation of the national currency is explained with flow of oil dollars to the Country.
Taxpayers should make remittances to fulfill their tax obligations to the public budget. At the same time the manat reserves should be directed at the payment of salaries and the implementation of domestic programs and projects. In this case the supply of the dollar increases in the currency market and the rise in supply alters the prices. At present the supply of foreign currency has increased and it decreases the rate of the dollar.
In this respect we [Ministry], the government and the NBA will make every effort to minimize the supply of the dollar in the market, the Minister noted.
The International Monetary Fund (IMF) forecasts the maintenance of the pace of national currency in respect to USD and in the future. Unlike the Central banks of other countries, where the monetary policy targets fixation of the rates, the NBA pursues a policy of a free-standing rate with the regulation through intervention.
As a result of such a policy in January to August 2006, the rates of the national currency rose by 4.1%, whereas in 2005 manat rose approximately 5%. Over 8 months the participation of the NBA in the currency market was $418mln.