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

New wave of depreciation of the Azerbaijani national currency; reasons and expectations

New wave of depreciation of the Azerbaijani national currency; reasons and expectations Starting the mid of October 2016, the manat, Azerbaijan currency, has been depreciating against the dollar. The official rate of the manat against the dollar was 1.5969 on October 18 and it was fallen to 1.6381 on October 31, 2016. It means the manat’s official rate depreciated against the dollar by 2.5 % last 2 weeks, however, the real market price of the manat... Read More

Vugar Bayramov to the Bloomberg: “Dollar demand is expected to rise again by the end of the year in Azerbaijan”

Vugar Bayramov to the Bloomberg: “Dollar demand is expected to rise again by the end of the year in Azerbaijan” As the weeks ticked away before a referendum in late September on changing the constitution — with nary a televised debate or public polling — the Azeri authorities sprung into action after the manat depreciated for three months and panic stirred on the streets of the capital. The nation’s sovereign wealth fund,... 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

How long will the dollar continue to appreciate against the manat?

How long will the dollar continue to appreciate against the manat? Recently, the frequently asked questions are mostly related to the causes of the depreciation of the manat and at what level and how long the dollar may appreciate. If 149 manat was needed in order to purchase 100 dollars on 25th of May, more than 152 manat is paid per 100 dollars on 20th of June 2016. This implies that the national currency has depreciated by more than 3 manats officially... Read More

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