Central Bank of Azerbaijan adopted decision on transition to floating exchange rate

Baku. 21 December. REPORT.AZ/ Considering the strengthening of long-term external economic shocks, Board of Directors of the Central Bank of Azerbaijan (CBAR) adopted decision on transition to floating exchange rate regime on December 21 in order to equalize balance of payments, to protect foreign exchange reserves of the country in critical level, ensure international competitiveness of national economy.

Report informs referring to the Central Bank, in accordance with the decision, exchange rate of manat mainly will be formed according to influence of fundamental factors defining ratio of supply and demand in foreign exchange market. 

Participation of CBAR in foreign exchange market will be carried out in accordance with this treatment.  

The Central Bank also announced comprehensive measures for security of retail deposits and other deposits, increased capital requirements and liquidity of banks.

The CBAR reasoned its actions by the threefold fall in oil prices since 2014.