Increase of transfers from SOFAZ into state budget to back stability of Azerbaijan's manat – CBA

By Trend

The increase in transfers of the State Oil Fund of Azerbaijan (SOFAZ) to the state budget for 2022 compared to the previous year will support the stability of the Azerbaijani national currency, Trend reports citing the Central Bank of Azerbaijan (CBA) on Dec. 17.

According to the CBA, a surplus of the balance of payments and the adopted macroeconomic platform can neutralize the risk factors in the medium term.

“The increase in oil transfers to the state budget adopted for 2022 compared to the previous year will support the stability of the national currency,” the message said.

According to the CBA, on the other hand, anti-inflationary monetary policy will serve to maintain a balanced level of domestic demand for monetary factors.

“As far as the impact of temporary external and internal cost factors on prices is neutralized, the mitigating effect of monetary factors playing a balancing role will increase,” the CBA said.

The following decisions on the parameters of the interest rate corridor will be made taking into account the medium-term macroeconomic forecasts and changes in the balance of inflation risks.

“We will continue to closely monitor the factors of inflation related to the costs and supply and consider the forecasts for the development of the world and national economies in different aspects to be able to make adequate decisions in the field of monetary policy,” the CBA said.