Just as the euro has depreciated against other currencies, it has recently been depreciating against the manat, the Central Bank of Azerbaijan told Report.
"Since the beginning of the year, the euro has depreciated by about 13% against the manat," the bank said.
It was noted that the euro devaluation has a reducing effect on inflation by making imports from the eurozone countries a bit cheaper: "As a result, inflationary imports are limited through the exchange rate channel."
Regarding the effect of the exchange rate of the euro on the general situation in the domestic currency market, the Central Bank stated that the balance in the foreign exchange market mainly depends on the balance of payments: "The surplus of the balance of payments is accompanied by an increase in the supply in the foreign exchange market. The surplus of the current account of the balance of payments for the first quarter of 2022 was at the level of 22.4% of the Gross Domestic Product. Positive trends in the balance of payments continued in the second quarter."