The strengthening of the nominal effective rate of the manat was one of the main factors limiting the import of inflation, Trend reports via the review of the monetary policy of the Central Bank of Azerbaijan (CBA).
According to the review, in the first half of this year, the average daily official rate of the manat to the dollar amounted to 1.7 manat.
"The foreign currency purchase and sale rates set by banks were close to the official rate. Thus, the average daily purchase rate of one US dollar by commercial banks was 1.6979 manat, and the selling rate was 1.7024 manat," the review said.
During the reporting period, the manat exchange rate mainly strengthened against the currencies of the trading partner countries. So, the manat exchange rate rose against the euro, Turkish lira, British pound sterling, Kazakh tenge, Japanese yen, Swiss franc, Ukrainian hryvnia, Russian ruble and Georgian lari.
"The dynamics of bilateral rates also affected the dynamics of the multilateral rate. In general, over the reporting period, the nominal effective rate of the manat in the total weight of non-oil trade strengthened by 3.6 percent, while the real effective rate fell by 5.7 percent. The decrease in inflation in Azerbaijan was below average inflation in partner countries affected the real effective exchange rate," added the review.