Oil-exporter Azerbaijan devalues currency 33.5 percent

[yota691]

Oil-exporter Azerbaijan devalues currency 33.5 percent

Updated 3:09 am, Saturday, February 21, 2015


BAKU, Azerbaijan (AP) — Azerbaijan's Central Bank has suddenly devalued the country's currency by 33.5 percent against the dollar.
Like Russia, Azerbaijan has been hurt by the sharp decline in the price of oil, its main export. Russia's currency has lost more than half of its value in the past year.
In announcing the devaluation on Saturday, the Central Bank said it was aimed at "stimulating the diversification of Azerbaijan's economy, strengthening the international competitiveness of the economy and its export potential, and guaranteeing stability in the balance of payments."
The official rate for the manat was set at 1.05 to the dollar. The day before the rate was 0.7862 to the dollar.

 

The devaluation raised fears of a spike in inflation, especially on the consumer market, because it will make imports more expensive.

Dollar exchange rate in Azerbaijan rises to 1.05 manat - UPDATED
 



[ 21 February 2015 11:34 ]
Baku. Musa Ahmadov – APA. Starting from February 21, 2015, the official rate of the dollar to the manat will be $1 / 1.05 manat, the Central Bank of Azerbaijan said in a statement.

According to the statement, the decision was taken in order to create additional incentives for diversification of the national economy, strengthen its international competitiveness and export potential, ensure strategic stability of the balance of payments and international solvency of the country
 
It is noted that the correction of the manat exchange rate is also aimed to neutralize the effect of a significant depreciation of the exchange rate, which the national currencies of most countries have suffered.
 
The Central Bank of Azerbaijan will continue to participate in the foreign exchange market within the framework of a specific corridor.

[yota691]

Azerbaijan reduced the value of its currency to strengthen the financial capacity of the economy
By Roudao Hours ago






The US dollar


Roudao - Arbil,

the central bank cut in Azerbaijan, the country's currency value by 33.5 percent against the dollar, in an effort to strengthen the capacity of the country's economy to international competition. The damaged Azerbaijan are the other of the sharp decline in oil prices, as is the case in Russia, where Oil is the most important exports for Azerbaijan, Russia's currency has lost more than half its value in the last year. The central bank said, in announcing the reduced value of Saturday, he was "designed to stimulate capital investment in the Azerbaijani economy, and strengthen the international competitiveness of the economy and the potential for export and ensure stability in the balance of payments."and reached the official exchange rate of manat (currency Azerbaijan) to 1.05 against the dollar, after the exchange rate yesterday was 0.7862 manat against the dollar. The increased devaluation fears of rising inflation, especially in the consumer market, because it will make imports more expensive.

[yota691]

Azerbaijan significantly reduce its currency

A. P. B.

 

 

Central Bank of Azerbaijan Saturday decided to significant reduction of the local currency at a time when the former Soviet republic in the Caucasus suffer rich hydrocarbons from the repercussions of the decline in oil price and the crisis in Russia.

 

The central bank set the exchange rate of the national currency to 1.05 manat per dollar and 1,195 euros each. This represents a reduction of the currency by 34 percent relative to the dollar and 33.8 percent for the euro.

 

The central bank said in a statement that the decision "aims to create extra stimulation to diversify the economy and enhance the competitiveness and exports."

 

The oil and gas based on the Azerbaijani economy, accounting for 95 percent of total exports and 70 percent of state revenue.

 

And the impact of the oil price has fallen sharply since June on the country's economy.

 

And forced the central bank in December 2014 to pump about 8 percent of the reserves of foreign currency in the market to support the national currency (manats) in addition to about one billion dollars this year.

 

And led the Russian ruble rate and oil prices fell to flood the currencies of many of the former Soviet republics.

 

In Georgia, for example, the local currency plunged last week to the lowest level since 2004, and lost in three months, 22.4 percent of its value against the dollar.

[The Machine]

Azerbaijan Devalues Currency Amid Plunging Oil Price

http://www.rferl.org/content/azerbaijani-devalues-currency-amid-plunging-oil-prices/26861627.html

 

By RFE/RL's Azerbaijani Service

February 21, 2015

 

The Central Bank of Azerbaijan (CBA) has abruptly devalued the country's currency against the dollar and the euro.

The official rate for the manat was set on February 21 at 1.05 to the dollar and 1.19 to the euro.

 

It means the manat lost 33.5 percent and 30 percent of its value against the U.S. and European currencies, respectively.

The CBA said the devaluation was aimed at "stimulating the diversification of Azerbaijan's economy, strengthening the international competitiveness of the economy and its export potential, and guaranteeing stability in the balance of payments."

 

Azerbaijan has been hurt by the sharp decline in the price of oil, the country's main export. 

 

The devaluation raises fears of a spike in inflation because it will make imports more expensive.

The decision is also expected to sharply increase the domestic demand for dollars and euros.