Azerbaijan, Baku, May 18 / Trend N.Ismayilova /
The Central bank of Azerbaijan (CBA) conducted foreign currency sterilization in the amount of $156 million in the first quarter of 2011 and the foreign exchange market operated in a self-regulation mode, the CBA report on monetary policy reads.
The CBA has been implementing its exchange rate policy in the context of larger supply channels in the currency market and a new operational mechanism since early 2011.
The rate of the manat against the dollar consolidated by 0.65 percent in the first quarter of 2011. The stability in the national currency had a positive impact on the stability of macroeconomic and financial sector during this period.
During the reporting period, the nominal effective exchange rate of the manat strengthened against the currencies of Azerbaijan's trade partners and reduced against the currencies of other countries. The dynamics of the nominal effective exchange rate of manat impacted the change in the real effective exchange rate.
The rate of the manat fell both in the nominal and real rates against the currencies of some countries Eurozone, Russia and Georgia) and it cheapened in the nominal rate, but strengthened in the real rate against the currencies of Great Britain, Kazakhstan, Japan, Israel, China and South Korea.