BAKU, Azerbaijan, May 18. The strengthening of the nominal effective rate of the manat acted as one of the main factors curbing the import of inflation, Trend reports via the Azerbaijani Central Bank's (CBA) monetary policy review.
According to the review, in 2023, the average daily official exchange rate of the manat against the dollar was 1.7 manat.
"The foreign currency purchase and sale rates set by banks were close to the official exchange rate. Thus, the average daily purchase rate of 1 US dollar by commercial banks was 1.6966 manat, and the sale rate was 1.7030 manat," the report says.
During the reporting period, the exchange rate of the manat mainly strengthened against the currencies of the trading partner countries.
Thus, the exchange rate of the manat increased against the Turkish lira, the British pound sterling, and the Russian ruble, and decreased against the euro, the Kazakh tenge, the Japanese yen, the Swiss franc, and the Georgian lari.
"The dynamics of bilateral exchange rates also influenced the dynamics of the multilateral exchange rate. In general, during the specified period, the nominal effective exchange rate of the manat in the total weight of non-oil trade strengthened by 3.5 percent, while the real effective exchange rate - by 2.7 percent," the report says.
According to the data, the decrease in inflation in Azerbaijan below the level of average inflation in the partner countries affected the real effective exchange rate.
