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

Azerbaijan’s manat stands strong in face of storms?

Azerbaijan’s manat stands strong in face of storms? Recently the most frequently asked question is how long manat will continue to appreciate. While at the beginning of 2016 the exchange rate of manat was 1.5610, national currency saw its value to increase to 1.4906 on the last day of May. That is to say, manat losing its value by 48% following second devaluation, was able to appreciate by 4% during last 5 months. This appreciation rate is lower... Read More

National currency rate in Azerbaijan: is the stability sustainable?

National currency rate in Azerbaijan: is the stability sustainable? Plummeting oil prices since the third quarter of 2014 have shaped new market conditions for the national currency of Azerbaijan. For the first time after the global financial crisis of 2008, the national currency has encountered serious challenges. The Central Bank attempted to preserve the stability of manat exchange rate at the expense of spending currency reserves. Although intervention... 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

New Decline in Azerbaijan Central Bank’s Currency Reserves

New Decline in Azerbaijan Central Bank’s Currency Reserves The Central Bank of Azerbaijan (CBA) has reported that its currency reserves has continued falling in September 2015. The CBA reports that as of October 2015 its currency reserves totaled $7.044 billion US versus $7.315 billion US by September 2015. Reminded here that the currency reserves were $8.501 billion US by August, $8.52 billion US by July, $8.43 billion US by June, $8.397 billion... Read More

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