CESD Report: The unexpected revenge of manat in Azerbaijan: what is going on in currency markets?

CESD Report: The unexpected revenge of manat in Azerbaijan: what is going on in currency markets? The rapid appreciation of the national currency manat over recent days has created a shock effect across the local population. Everyone, including the participants of the currency markets are trying to understand the causes driving the existing developments in the value of currencies. The current situation has even left local economists puzzled, who are... Read More

What to expect from the monetary policy of the Central Bank of Azerbaijan?

What to expect from the monetary policy of the Central Bank of Azerbaijan? The Central Bank of the Republic of Azerbaijan has announced that, a tight monetary policy is to be carried on. That is to say, the Central Bank will try to decrease the demand for USD by limiting monetary base. Although the implementation of the contractionary monetary policy since the oil price slump failed to stabilize the exchange rate of manat, the Central Bank does not... Read More

Azerbaijani Central Bank’s reserves knock “the read-line”: Next devaluation is at the door

Azerbaijani Central Bank’s reserves knock “the read-line”: Next devaluation is at the door The Central Bank of Azerbaijan (CBA) lost $ 127.0 million US of its foreign currency reserves in October 2016 due to high demand for foreign currencies. CBA’s foreign currency reserves declined to $ 4,005 billion US in November 1st, 2016 from $ 4,132 billion US in October 1st, 2016. Due to law oil price in the world market, high demand for foreign... Read More

CESD Chairman: Azerbaijan national currency will continue depreciating against the dollar

CESD Chairman: Azerbaijan national currency will continue depreciating against the dollar In the coming months, the devaluation of the manat will continue, the economist Vugar Bayramov said. In an interview with Turan Bayramov noted that AZN has not found its real exchange rate. Note that in the last two months the dollar in respect to manat has been growing. If on July 1, 2016, the dollar was worth an average of 1.56 manats, in August there is a... Read More

The Road Map of an Anti-Crisis Strategy in Azerbaijan

The Road Map of an Anti-Crisis Strategy in Azerbaijan Written by Dr. Vugar Bayramov The current economic policy, including the monetary policy needs to be compatible with post-oil or crisis period. Presently there are two major priorities in economic policy of government and the Central Bank: to constrain inflation and prevent or delay potential variations in the exchange rate of national currency. These priorities are important, however they are... Read More

Azerbaijan National Currency Rate: the Lowest in the Last Decade

Azerbaijan National Currency Rate: the Lowest in the Last Decade Azerbaijan Central Bank officially announced the lowest rate of the manat, the national currency, against foreign currencies including United States dollar in the last decade. The Central Bank’s official rate was 1.0517 against $ 1 US. The manat’s rate against the dollar was 1.0496 on April 07, 2015. The manat has depreciated against the dollar all days in the first week of April... Read More

Devaluation of Azerbaijani National Currency; Causes and Consequences

Devaluation of Azerbaijani National Currency; Causes and Consequences Starting from February 21st, 2015, the official exchange rate of the dollar to the manat, Azerbaijani national currency, has been set at 1.05 manat, which is 33.86 percent more than the exchange rate set before the beginning of the weakening process of the rate. Azerbaijani national currency has been depreciated against US dollar the first time since 2006. Central Bank of Azerbaijan... Read More

Does decline of oil price cause Azerbaijani national currency depreciation?

Does decline of oil price cause Azerbaijani national currency depreciation? Azerbaijani national currency, manat, will keep a stable rate against US dollar in the short term, the chairman of the Center for Economic and Social Development (CESD), well-know economist Vugar Bayramov said. In the medium and long term, then, according to Bayramov, here is difficult to predict manat’s rate since It will depend on the world oil market. “Despite the... Read More

$ 1,5 billion Sterilization in Azerbaijan

$ 1,5 billion Sterilization in Azerbaijan “The Central Bank of Azerbaijan (CBA) has been keeping regulatory monetary policy to intervene in the market in order to keep the exchange rate of manat, national currency, for more than the decade.  CBA held currency sterilization in the amount of USD 1,584 billion in 2012 and manat against USD consolidated by 0.19%. The stability of the manat monthly cost of 135 million dollars. In this regard, the crucial... Read More

How much Will Euro Depreciate Against Dollar?

How much Will Euro Depreciate Against Dollar? Greek Treasury will face huge amount lose, if the government is not formed in the near future. The Ministry of Finance of Greece stated that “if we do not have a government that would negotiate on the allocation of next IMF tranche, and if the state does not receive the expected monthly inflows to the budget, we face the problem of liquidity at the end of June”. We can only guess what will... Read More