The National Bank of Azerbaijan (NBA) expects the tendency on consolidation of national currency to continue in 2007, Trend reports.
If to estimate the situation from the economic point of view, there is no ground to change to it. Next year Russia expects the devaluation of national currency. The similar developments are also observed in Azerbaijan sharp rise in export entails increase of currency flow in the country and Government financial support to the development of the non-oil sector. It results in increase of currency supply in the fiscal market as compared to manat, which in its turn lead to the consolidation of manat. There is no ground for increase of dollar in 2007, said Rufat Aslanly, the NBA General Director.
Aslanly said that along with the maintenance of the parity between the real efficiency rate of manat and currency of the foreign trade partners, NBA attaches great importance to the preserving the consumer prices at stable level. The maintenance of stability in prices is one of the priority tasks of NBA. In case of increase of supply of foreign currency NBA is obliged to increase manat mass in circulation through manat intervention. It might lead to rise of consumer prices unless it meets the demand of real sector. Along with the macroeconomic issues, it is necessary to take into consideration institutional factors, development of regions, structure of production, and taking all that into consideration, the Government must regulate the rate of manat, said Mr. Aslanly.