Azerbaijani National Currency: Is the Current Status Quo Sustainable?

Azerbaijani National Currency: Is the Current Status Quo Sustainable? Currently, in Azerbaijan and the Caucasus, the situation in the economies of the region is quite variable. On the other side of the ocean, the US Federal Reverse System has been continuously raising the key interest rate. In Russia, the ruble depreciated due to existing and probable sanctions, in Turkey, economic and political circumstances have led to the 40% loss of the lira’s... Read More

Residents of Azerbaijan may have to pay off more credit than bargained for

Residents of Azerbaijan may have to pay off more credit than bargained for Vuqar Bayramov: “2.5 million citizens have bank debt, or approximately one fourth of the country’s population”. The Constitutional Court of Azerbaijan has delivered a verdict concerning a disagreement between borrowers and banks on how to pay off dollar-denominated loans – according to the old exchange rate or the new one. The Court verdict stated that the public will... Read More

The Effect of Oil Price Fluctuations on the Exchange Rate of the National Currency of Azerbaijan: Assessment of the years 2014-2017

The Effect of Oil Price Fluctuations on the Exchange Rate of the National Currency of Azerbaijan: Assessment of the years 2014-2017 Since the year 2014, falling oil prices continued. In the beginning of 2016, oil prices bottomed at about USD 29 /bbl, but a gradual increase was recorded towards the end of the year. During 2016, an upward trend in oil prices was obvious, despite market interventions and the lower than average annual price of oil (USD... Read More

The Saturday Syndrome: Roots of mistrust toward the exchange rates in Azerbaijan

The Saturday Syndrome: Roots of mistrust toward the exchange rates in Azerbaijan A New Manat depreciation” panic affected everyone in the country, starting from ordinary citizens to the government officials, businessmen and bank managers. The public panic happened despite the fact that around ten days ago, the head of the Central Bank announced “The currency market has been stabilized, manat has found its equilibrium in the market. Download Full... Read More

The Currency Market in Azerbaijan: Realities, Volatility and Perspectives

The Currency Market in Azerbaijan: Realities, Volatility and Perspectives The dollar /manat spot exchange rate specifies how much one currency, the US dollar, is currently worth in terms of the other, the manat . On the first of February 2017, the exchange rate of the national currency of Azerbaijan, the manat, hit a new record low; namely, 1 dollar was exchanged for 1.92 manat. Illegal black markets and psychological factors such as a lack of publicly... Read More

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

FED’s interest rate: Causes and Implications for Azerbaijan

FED’s interest rate: Causes and Implications for Azerbaijan The decision of the The Federal Reserve System (FED) of the USA has been among the most important economic news during the previous week. That is to say, following the long-term expectations, FED raised interest rates by 0.25 percentage points (making it 0.75%) . The decision of FED, which is to pose a serious impact on the future exchange rate of dollar, has been long waited in Azerbaijan... Read More

Vugar Bayramov: “Azerbaijan Will Most Probably Move to Liberal Floating Exchange Regime”

Vugar Bayramov: “Azerbaijan Will Most Probably Move to Liberal Floating Exchange Regime” Next year, the likelihood is high that the Central Bank of Azerbaijan following the example of Russia and Kazakhstan will move to a liberal floating regime of the national currency, Vugar Bayramov, the well-known economist in Azerbaijan, says. Dr. Bayramov underlined that, in this case, even transfers from the Oil Fund will not be able to prevent the depreciation... 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

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