BAKU, Azerbaijan, July 9. The Central Bank of Azerbaijan (CBA) keeps a close eye on the ever-shifting sands of exchange rates among its trading partners, a source in the CBA told Trend.
In general, the impact of a change in a macroeconomic indicator is viewed in several ways—the reason for the change in the indicator, the direction and persistence of this change, and its potential impacts.
The recent strengthening of the euro exchange rate is mainly explained by the weakening of the US dollar index.
"In the first six months of 2025, the spot dollar index depreciated by 10.7 percent. As is known, the US dollar is stable against the manat. Therefore, as a result of the appreciation of the euro against the US dollar, the euro also appreciated against the manat," the source said.
According to the source, the depreciation of the spot dollar index can't be sustainable.
"Estimates show that over the past 20 years, the base level of the spot dollar index has fluctuated in the range of 80.7-126, with January 2006 as 100. The average indicator during this period was 101.4. This indicates that dollar indices are volatile and tend to return to their average level in the long term," the source explained.
Additionally, the source noted that the CBA is closely monitoring the processes taking place in partner countries, constantly assessing the balance of inflation risks, and will continue to adequately use all the tools in its arsenal to ensure price stability.
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