Old currency bills to be removed from the circulation in Azerbaijan by 1 January 2007

According to the information given to APA by the chief of the press-service of the National Bank Kamran Nazirli, old currency bills will be replaced at the expense of banks acting in Azerbaijan:

“It is shown in the president’s decree in this connection that 1 new manat will be considered equal to 5 old manats when passing into the new manat. Old currency bills will be in the circulation along with new currency bills from 1 January 2006 to December 31, 2006. All kinds of payments will be possible to be realized. No limitations will be established by banks in receiving old currency bills and these banks will gradually replace old currency with new ones. The process will be stopped by 1 January 2007”.

K.Nazirli answering the question about whether letting new currency bills to the circulation can result in inflation or not informed that the practice of different countries was already studied in this connection and occurrence of only technical inflation can be predicted during the process. This means 1,5-2 % decrease of the value of the currency. This process will become stabilized again later on. It should be noted that currency bills with a new design will be brought to the country in December of this year. The design of several of kopecks at 6 dace-values and manats to be in the same number was already asserted and printing was started.

The designer of currencies to be printed in the OSBS Company of Austria is the author of “euro” Robert Kalina. Images about Garabagh and the history, culture, art of Azerbaijan and will be reflected on the new national currency. The security system of the new currency will conform to international standards. Security and technical characteristics of the national currency will be prepared in the frame of the technical support of the National Bank of Switzerland.