$ 1,5 billion Sterilization in Azerbaijan

$ 1,5 billion Sterilization in Azerbaijan

“The Central Bank of Azerbaijan (CBA) has been keeping regulatory monetary policy to intervene in the market in order to keep the exchange rate of manat, national currency, for more than the decade.  CBA held currency sterilization in the amount of USD 1,584 billion in 2012 and manat against USD consolidated by 0.19%. The stability of the manat monthly cost of 135 million dollars. In this regard, the crucial issue is whether there is a need to hold a stable exchange rate of manat”, said in an interview with “Echo” Vugar Bayramov,  the chairman of the Center for Economic and Social Development.

Vugar Bayramov said that expensive manat hurts exports, the latter in Azerbaijan mainly consists of oil and oil products. Crude oil and petroleum products does not depend on the stability of the manat.”Moreover, as noted Bayramov, Azerbaijan exports significantly exceed its imports. “After all, the amount of currency received from exports, much higher than the amount of currency it takes to import. Therefore, based on the economic theories, the liberalization of the manat will strengthen it”.

But the appreciation of the manat, in the case of liberalization, is only the initial stage, he said. “In our view, further manat starts to fall. After manat will be liberal, any external factor will influence of the national currency. Population will gradually abandon the manat as a means of accumulation. Should not discount the psychological pressure on the dollar. Given all the realities, the manat may drop to $ 1/2 manat “- warns Bayramov.

 

CESD, 2013

 

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