18:07 - 8.01.2020

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January 8, Fineko/abc.az. Expert economist Samir Aliyev commented on the statement about foreign currency sold by the State Oil Fund in December 2019.

ABC.AZ reports that according to the expert, last year the Central Bank increased its foreign exchange reserves by 11% up to $6.3 bn.

Aliyev pointed out that the currency purchase also played its role in the annual growth of Bank's reserves by $632.3 million: "Precisely by this purchase the Central Bank did not allow the price of the manat to rise. The manat was under pressure to rise in price due to excess demand in the domestic currency market. And this gives a reason to say that last year the transition to the floating exchange rate of the manat could lead to its rise in price. The Central Bank also confirms this opinion in its statement on the main directions of monetary and financial stability policy for 2020. The growth of imports almost by 20% could not affect seriously the demand for the currency as well. The high price for oil made it possible to ensure positive balance in the balance of payments.

No grave changes in the exchange rate of the manat are expected this year. The only exceptions are two cases - sharp reduction in the price of oil and political instability. The government will keep the manat at the current level at least in the 1st half of the year. Even if possible, the decision will be extended until the end of the year. It can only change the decision based on external and internal factors that may occur."

By Elmir Murad