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No impact of Brexit on exchange rate of manat to US dollar, Azerbaijan says

Exchange rate fluctuations that occur in connection with the UK’s decision to leave the EU have no impact on the formation of the exchange rate of the US dollar to Azerbaijani manat, the Central Bank of Azerbaijan told Trend June 24.

“The US dollar rate to Azerbaijani manat is defined not based on the exchange rate fluctuations on the global financial markets due to UK’s decision to leave the EU, but on the ratio of supply to demand in the local foreign currency market,” the bank said.

“The main factors affecting supply and demand ration in the foreign currency market are the state of the balance of payments – that is, the volume of imported and exported foreign currency, the volume of oil transfers for the needs of the budget, as well as dedollarization measures implemented in the country,” the bank noted.

The Central Bank of Azerbaijan said that according to the strategy of diversification, currency reserves of the bank are kept in US dollars, euros and pounds.

“Due to the fact that most part of the reserves of the Central Bank of Azerbaijan (85 percent) is placed in US dollars, depreciation of other currencies against the US dollar has not led to a significant foreign exchange difference,” the bank added.

On June 24, the euro fell by 3.2 percent against the manat compared to June 23 – to 1.6787 AZN/EUR, while the depreciation of the pound rate against the manat amounted to 9.3 percent – 2.0530 AZN/GBP, according to the Central Bank of Azerbaijan.

On June 24, the pound has fallen by 12 percent against the US dollar – to 1.3231 USD/GBP.

Source: Trend

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