CBA names macroeconomic factors defining long-term manat trend

Baku. 28 December. REPORT.AZ/ The dynamics of bilateral manat rate will be one of the main conditions of low inflation in 2019 too,  the Central Bank of Azerbaijan (CBA) said in a statement.

Calculations show that increasing impact of manat’s depreciation on inflation is higher than decreasing impact of its strengthening on prices.

The statement says that the key factor ensuring balanced currency market will be the balance between the main components of the currency supply by the government and economy’s demand for currency.

"The demand for currency will be formed by dynamics of import, external debt flows and balance of capital account, as well as indirect effects of conjuncture. Long-term inclination of manat rate is defined precisely by these macroeconomic factors."