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Central Bank: Economic entities adapted to floating rate
16 March 2016
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Analysis of the processes in the currency market during the past period of 2016 shows that the agiotage has been eliminated and the economic entities have gradually adapted to the floating rate, Central Bank told.
According to the bank, the supply exceeded the demand in 17 of 29 currency auctions held since early 2016: “The exchange rate was formed depending on demand/supply ratio in the market. Moreover, measures for dedollarization are also factor influencing demand for the currency. Placement of government securities with high YTM, setting of upper limit of interest rate for insured deposits in manat at higher level also aim to increase the confidence in manat. In order to increase the confidence in manat and promote the increase of manat deposits, the Central Bank has revised parameters of the interest-rate corridor. All of these strengthen the expectations of stabilization in the currency market. Central Bank will further participate in the currency market accordingly to the new exchange rate”.
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