17:36 - 31.07.2026

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July 31, Fineko/abc.az. Strengthening of the Azerbaijani manat reduces imported inflation in the country.

CBA chairman Taleh Kazimov said at a press conference that when preparing inflation forecasts, the Central Bank takes into account several factors and maintains optimistic estimates for the baseline scenario under the current conditions.

"In inflation management, the key factors affecting price growth are the inflation processes of our trading partners and costs. In this context, we mainly monitor producer prices in agriculture. The main factor reducing inflation is the nominal effective exchange rate.

In simple terms, when energy prices rise in global markets, the dollar index strengthens. This means that the manat also strengthens against other currencies. As a result, manat's exchange rate strengthens against the currencies of our trading partners, leading to a decrease in imported inflation. Nearly 80% of our non-oil/gas imports accounts for our trading partners who are energy exporters," Kazimov said.