"Report": Manat velocity will be reduced gradually

Baku. 13 March. REPORT.AZ/ In January 2017, velocity of Azerbaijani manat amounted to 5.84 points.

Report informs citing the Central Bank of Azerbaijan (CBA) velocity of manat showed an increase of 0.64 points compared to December 2016 and decrease by 0.18 points compared to the same period last year.

Analytical Group of Report informs, according to statistics of CBA, the minimum rate of turnover (2.68 ) over the last 16 years recorded in January 2015, on the eve of the first devaluation.

Notably, velocity of money is the frequency at which the average unit of currency is used to purchase newly domestically-produced goods and services within a given time period. In other words, it is the number of times one unit ofmoney is spent to buy goods and services per unit of time.The maximum limit of this indicator recorded in 2005 (15,72%).

"In current situation, analysis of increase in turnover rate of manat shows the increase in inflation and the decrease in the money supply (AZN) in circulation. So, in January, monthly inflation was 2.3%, GDP growth was 0.8%.Cash money in circulation decreased by 6%. Notably, the turnover rate of manat is expected to decline in coming months.Thus, a reduction in the mass of cash in circulation will reduce the growth rate of GDP and inflation", the analysts said.