Elman Rustamov Says No Sharp Devaluation

Baku / 27.09.16 / Turan: The Financial Stability Board is taking the necessary steps for the stability of the manat, the head of the Central Bank of Azerbaijan Elman Rustamov told the media.

According to him, the national currency rate is formed “on the basis of a managed floating regime” today.

‘For the first nine months of the current year the AZN rate was adjusted by 5% compared to the beginning of the year,’ Rustamov said.

The main purpose is reducing double-digit inflation, which currently stands at 11%.

‘High inflation and devaluation harm all actors of the economy. But we are optimists. Despite the tension of the situation, we keep it under control and manage it,’ said the head of the Central Bank.

Rustamov said the 6 billion AZN deficit in the balance of payments creates a lot of tension and pressure on foreign exchange reserves and exchange rate.

‘Management of the currency exchange rate also means management of processes that create a negative balance in the balance of payments,’ Rustamov said.

Referring to a possible devaluation of the national currency, the head of the Central Bank said all the talks about this are groundless.

‘At the latest auction the demand for foreign exchange was much lower than the supply, which is an indication that the government brings the necessary amount of currency to the market. All the rumors about upcoming sharp devaluation are baseless,’ he stressed. -71B-