Turnover speed of Azerbaijani manat soars

Baku. 10 August. REPORT.AZ / Turnover speed of Azerbaijani manat has made 5.48 points in June.

Report informs citing the Central Bank of Azerbaijan (CBA), the speed of circulation of manat increased by 0.22 points compared to the previous month and decreased by 0.03 points in the annual comparison. As of January 1, this indicator was 5.2 points.

Analytical Group of Report notes, turnover speed of Azerbaijani manat in January 2015, shortly before the first devaluation, reached a 16-year low (2.68).The maximum limit of the figure recorded in 2005 (15.72%).

Notably, turnover speed of Azerbaijani manat reflects the ratio of the product of GDP and inflation to the money supply.The increase in turnover speed in June is due to the decrease of manat mass in circulation by 1.15%.

"Stabilization of turnover speed of Azerbaijani manat under current conditions shows that inflation and money supply in Azerbaijan have stabilized relatively.So, in view of the fact that inflation accelerated in January-March and the excess money supply stimulated devaluation of the national currency, measures were taken to sterilize excess money, which in turn increases turnover speed of manat. Notably, no serious changes in turnover speed of manat and cash in circulation predicted in the coming month.

Against the backdrop of the stabilization of the exchange rate of manat, inflation will slow in the coming months, transition to deflation expected," analysts believe.