Vusal Gasimli: Real effective exchange rate of manat reached a peak

12:54 - 23.06.2020


June 23, Fineko/abc.az. In the context of the coronavirus pandemic (COVID-19), the real effective exchange rate of the manat is growing, having reached a peak over the past 5 years.

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

According to Gasimli, over the past 5 years the economic balance has changed twice under the influence of external shocks: "A number of arguments have a positive and negative impact on the real effective exchange rate of the manat. The real effective exchange rate is directly proportional to the size of CBA’s discount rate. The last time CBA lowered the discount rate from 7.25% to 7%. The launch of anti-crisis measures for AZN 3.5 bn laid the foundation for expanding the monetary base by 8.5% in May."

Gasimli stressed that in the coming months it is also possible to forecast the growth of the monetary base from the minimum level to which it fell in April of this year, in accordance with the requirements of fiscal policy. The reduction of the discount rate and the expansion of the monetary base have a downward effect on the real effective exchange rate of the manat.

 

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