Continuing the trend of2010-11, the manat remained essentially stable in nominal terms against the USdollar in 2012, at Manat 0.79:US$1, the Economic Intelligence Unit said.

The Central Bank willcontinue to intervene in the foreign-exchange markets during the initial partof the forecast period to prevent rapid fluctuations in the exchange rate. Lowinflation in 2013 combined with the maintenance of the currency peg is likelyto lead to a depreciation of the manat in real terms, marginally improving theeconomy's competitiveness.

“We expect the manat's modest nominal appreciation against the dollar tocontinue in 2014-18 as investment and foreign-exchange inflows will remainhigh. We believe the Central Bank will intervene if necessary to prevent a faster appreciation of the manat,” it said.

ANN.Az