The Central Bank of Azerbaijan (CBA), which oversees financial market
and financial system stability and operations in the country, announced
that the Bank abandons the manat peg to the US dollar.
The CBA Board has decided to shift on February 16, 2015 from the bilateral targeting of the exchange rate to a bi-currency basket in setting the exchange rate of manat. It was considered feasible to follow the exchange rate policy on the basis of the dual-currency basket (USD/EUR).
Meanwhile, CBA President Elman Rustamov emphasized that any weakening of the currency would be gradual rather than sudden, saying that the central bank would “take into account the interests of the population.
“It is critical to make some kind of corrections to fiscal and monetary policy,” Rustamov said in an interview to Financial Times. “We consider that we should transit to a more flexible exchange rate regime and gradually we will transit to an inflation-targeting regime.”
The Central Bank will continue to operate in the foreign exchange market within the set corridor.
The use of new operating framework will enable to follow a more flexible exchange rate policy and ensure macroeconomic efficiency, as well as help economic entities gradually adapt to the new conditions, according to the CBA report.
Read more Click here / www.trade4x.net
The CBA Board has decided to shift on February 16, 2015 from the bilateral targeting of the exchange rate to a bi-currency basket in setting the exchange rate of manat. It was considered feasible to follow the exchange rate policy on the basis of the dual-currency basket (USD/EUR).
Meanwhile, CBA President Elman Rustamov emphasized that any weakening of the currency would be gradual rather than sudden, saying that the central bank would “take into account the interests of the population.
“It is critical to make some kind of corrections to fiscal and monetary policy,” Rustamov said in an interview to Financial Times. “We consider that we should transit to a more flexible exchange rate regime and gradually we will transit to an inflation-targeting regime.”
The Central Bank will continue to operate in the foreign exchange market within the set corridor.
The use of new operating framework will enable to follow a more flexible exchange rate policy and ensure macroeconomic efficiency, as well as help economic entities gradually adapt to the new conditions, according to the CBA report.
Read more Click here / www.trade4x.net
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