The Central Bank of Azerbaijan (CBA) doesn’t interfere in the regulation of the manat rate against the US dollar, head of the CBA, Elman Rustamov told reporters May 24.
He said the CBA will stick to its policy of the national currency’s floating exchange rate.
“As one can see, today the Azerbaijani manat continues to strengthen, which shows that the CBA doesn’t interfere in the regulation of the manat rate,” Rustamov said. “Currently, the rate of manat is formed on the basis of supply and demand on the currency market, as well as on the basis of internal and external fundamental factors.”
He added that the CBA may interfere [through currency interventions] in the regulation of the exchange rate only if serious problems emerge.
“But the current slight fluctuations in the exchange rate of manat are not such a problem for us to interfere in the regulation process,” Rustamov said. “Similar fluctuations are now observed in currencies of many countries, including Russia, Kazakhstan and others, and this is a normal process.”
The CBA switched to the floating rate of manat on Dec.21, 2015 as a result of which the exchange rate of dollar and euro increased by 47.6 percent and 47.9 percent and stood at 1.55 and 1.685 manats, respectively.