12:59 - 13.03.2020

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March 13, Fineko/abc.az. Comparing the current ratio of cash outside banks to the broader money supply with the same indicator for 2014, we now see a greater decrease - by 45%.

ABC.AZ reports that the relevant statement was made by Vusal Gasimli, executive director of the Center for Analysis of Economic Reforms & Communications.

He noted that when calculating with monetary aggregates, the pressure of dollarization has significantly decreased compared with 2014.

Therefore Gasimli believes that it is easier for the bank to meet the demand of the foreign exchange market: "Given the prospect of decline in imports from China, Iran and other countries during this year and the import of monetary gold last year, we can predict that less currency will be needed for import needs than last year.

By the way, Central Bank's foreign exchange reserves only serve as a macroeconomic "stabilizer” and "safety cushion". Currency trading held this week at the Central Bank was conducted with involvement of the State Oil Fund. The latter plans to offer $6.8 bn to the local market this year at the current rate for transfers to the State Budget and financing of improving housing conditions for displaced people.

Currently, the main task is to regulate supply and demand in the currency market and prevent panic. The population's currency demand will be fully paid for."