Report experts: Central Bank will reject 'floating exchange rate'

Baku. 9 March. REPORT.AZ/ The Central Bank of Azerbaijan (CBAR) is expected to reject 'floating exchange rate', which has been applied since December 21, 2015.

Analytical Group of Report News Agency considers, reduction of manat by the CBAR from February 24 can be explained with change in currency policy. Thus, however, US-dollar official exchange rate was 1,5593 AZN/USD on February 24, the CBAR reduced currency mass from 100 million USD to 30 million USD, auctioned next day. But in previous days offering of 200 million USD observed.

Notably, on February 24, price of 'Brent' crude oil made 33 USD per barrel. Today 'Brent' crude oil is sold for 40 USD per barrel, this figure is 21% more in comparison with February 24. After the CBAR changing currency policy on February 24, demand for dollar increased in the domestic market and exceeded the amount offered in the auction for several times.

Analytical Group of Report News Agency believes that not achieving intended effect in the period of strengthening exchange rate of manat, the CBAR is forced to make changes in currency policy.

The analytical group considers USD official rate will reach 1,85-2,10 AZN/USD in a short period and stabilize in a definite level: 'The CBAR is expected to announce its decision on fixed exchange rate at least in earlier May. In such case, significant increase can be expected in GDP in second half of 2016.'