BAKU, Azerbaijan, February 27. The strengthening of the nominal effective exchange rate of manat has been one of the key factors limiting import of inflation, Trend reports.
The data from the monetary policy review of the Central Bank of Azerbaijan (CBA) shows that the average daily official exchange rate of the manat against the dollar was 1.7 manat in 2023.
"The purchase and sale rates of foreign currency set by banks were close to the official exchange rate. Thus, the average daily buying rate by commercial banks for one US dollar was 1.6945 manat, and the selling rate was 1.7020 manat," the review said.
Throughout the reporting year, the exchange rate of manat varied in different directions concerning the currencies of other trading partner countries.
"The dynamics of bilateral exchange rates also influenced the dynamics of multilateral exchange rates. Overall, over the year, the nominal effective exchange rate of manat strengthened by 19.3 percent, and the real effective exchange rate increased by 5.1 percent. The diminishing impact on the real effective exchange rate was due to the fact that inflation in Azerbaijan is significantly lower than the average inflation in partner countries," the review noted.
Meanwhile, inflation in Azerbaijan amounted to 8.8 percent in 2023, up from 13.9 percent in 2022.
