On termination of the independent activity of the currency exchange points, the income of banks for foreign exchange transactions is rapidly growing. This also contributes to the expansion of the margin basis from 2 to 7-8%.
According to the economist Rovshan Agayev, if prior to the devaluation of the manat exchange points earned 20-30 gepiks per 100 US dollars, today the banks earn not less than 40-50 gepiks. According to the financial report, in 2015 OJSC Capital Bank earned 40.7 million AZN of net profit from that. In the previous year, the bank's income from these transactions amounted to only 14.7 million manats.
In the past year the International Bank of Azerbaijan had income from currency trading in the amount of 37.4 million manats (+7.3 million AZN).
Currency trading continues to generate income to banks. For example, JSC Bank Silk Way gained 1 million 975 thousand AZN from that in Q1. ----08B
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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