Effective exchange rate of Azerbaijan rises in 1H2021

Finance Materials 3 August 2021 12:36 (UTC +04:00)
Effective exchange rate of Azerbaijan rises in 1H2021

BAKU, Azerbaijan, Aug.3

By Zeyni Jafarov - Trend:

The nominal effective exchange rate, weighted in non-oil trade during the first half of 2021, increased, Trend reports on August 3 referring to the Central Bank of Azerbaijan (CBA).

According to the CBA, this indicator grew by 1.7 percent since the beginning of this year, while the real effective exchange rate - one percent.

The rise in the nominal effective exchange rate is due to the fall in the exchange rates of the countries - the main trade partners of Azerbaijan in relation to the Azerbaijani manat, the bank said.

In the first six months of this year, the money supply in manat terms (M2) increased by 5.8 percent and amounted to 21.48 billion manat ($12.64 billion).

External liabilities of the country's banking sector decreased by 27.6 million manat ($16.2 million) down to nearly 1.14 billion manat ($670 million).

"The reported change in the structure of external liabilities is associated with a decrease in LORO correspondent accounts of non-resident banks," added the CBA.

As Director General of the Central Bank of Azerbaijan (CBA) Toghrul Aliyev earlier said, the total profit of the banking sector in Azerbaijan in the first half of 2021 amounted to about 366 million manat ($215.2 million), said, and out of 26 banks operating in Azerbaijan, four completed the second quarter with a loss.

Besides, according to him, the net profit of the remaining 22 banks amounted to 372 million manat ($218.8 million).

(1 USD = 1.7 AZN on Aug.3)


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