In the condition that the supply is greater than demand, the exchange rate of manat has strengthened by 4% since early 2017 and this had reducing impact on inflation expectations, the CBA said in the statement on the main directions of the monetary policy for 2018 and the medium-term period, published on its website Dec. 29.
‘Significant rise in manat rate may have led to several micro and macro risks. Demand of fiscal sector for liquidity was the main factor that affected monetary condition and increase of monetary base. In eleven months of 2017, monetary base in manat increased 10.5%’, the statement said.
© APA 2018