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

New currency crisis in Azerbaijan

New currency crisis in Azerbaijan Azerbaijani banks completely halted foreign-currency sales as demand by businesses and households soared and the manat continued to depreciate against the dollar. Central Bank of Azerbaijan depreciated local currency against the dollar by almost 7 % in the last month. The official rate of the manat was depreciated against the dollar to 1.7039 on November 15th, 2016 from 1.5969 on October 18th 2016. Meanwhile, the... 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 Research Paper: Currency market in Azerbaijan: Challenging environment for the national currency

Currency market in Azerbaijan: Challenging environment for the national currency In August, the exchange rate of national currency of Azerbaijan-“Manat” beat all historical records. That is to say, the exchange rate was 1 USD= 1.61 Manat in previous month . It should be noted that, the exchange rate hit 1 USD= 1.6 Manat in March, 2016. Since the second half of 2014, due to the fall of oil prices in the world markets there is a visible pressure... Read More

Bloomberg: Azerbaijan’s Banks Halt Foreign-Currency Sales as Crisis Deepen

Bloomberg: Azerbaijan’s Banks Halt Foreign-Currency Sales as Crisis Deepens Vugar Bayramov: “The manat will continue to lose as long as demand for the dollar exceeds offer by many times at auctions organized by the central bank”. Banks in the Azeri capital completely halted foreign-currency sales as demand by businesses and households soared and the manat continued to depreciate against the dollar. None of the 15 lenders visited in central... 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

Oil Currency Breaks Ranks as Azeris Can’t Quench Dollar Cravings

Oil Currency Breaks Ranks as Azeris Can’t Quench Dollar Cravings As higher energy prices buoy currencies of commodity producers, one is swimming against the tide. Even after losing more than half its value against the dollar in two devaluations last year, Azerbaijan’s manat is struggling to find a bottom. In fact, it just had its worst month since the height of the crisis in oil markets in January. The currency market of the third-biggest oil... Read More

Economists Appeal to President to Solve Foreign Currency Loans Problem

Economists Appeal to President to Solve Foreign Currency Loans Problem A group of prominent economists of Azerbaijan appealed to President Ilham Aliyev with a request to resolve the problem of foreign currency loans of the population. The problem of repayment of loans issued in foreign currency worsened markedly after the devaluation of the manat, which led to a twofold increase in the cost of credits in manat equivalent. This cheapening of the manat... Read More

Bloomberg: Central Bank Depleted by Azeri Crisis as Oil Brings No Relief

Bloomberg: Central Bank Depleted by Azeri Crisis as Oil Brings No Relief Vugar Bayramov: “Sooner or later, the central bank will have to pull out of the market to stop the depletion of its currency reserves” The once-in-a-generation crash in oil prices sent the Azeri economy staggering into a crisis and the central bank is running out of options to stop the unraveling. Every seventh lender is now shut, the currency is testing new lows and by one... 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

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