OREANDA-NEWS. December 1, 2011. The Central Bank of Azerbaijan (CBA) has determined with activity priorities.

Today in Baku at the IV International Banking Conference Emin Huseynov, director of the Centre for Research & Development under the CBA, has claimed that the Bank’s activity priorities is to ensure price stability, maintain one-digit inflation level to be adequate to macroeconomic pre-conditions and ensure financial system stability.

"In order to maintain inflation at the one-digit level we plan transfer to more flexible exchange rate formation in the medium-term prospect. At that, the Central Bank will keep its presence in the foreign exchange market precisley with the purpose to smooth excessive volatility in exchange rate. The transition to inflation targeting will depend on the rate of decline of the non-oil deficit and financial market development," Huseynov said.

In turn, CBA first deputy chairman Alim Guliyev says that market formation of exchange rate has been and continues to be the Bank’s goal.

"Already in 2011 CBA foreign exchange intervention are not large - less than USD 100-120 million, but they will become traditionally active in December, when large exchange operations are conducted for the State Budget and our the State Oil Fund converts its finances. At the same time only the CBA is able to cope with such volumes,” Guliyev said.

In 2011, the nominal exchange rate of manat has strengthened by 1.4% and the real exchange rate has not changed.