Boom in Foreign Currency Dropping

Baku hosts a conference on Social Business - the Road Leading to Development.

According to the assistant on economic reforms of the President of Azerbaijan Natig Amirov, due to negative developments in the global economy, currency devaluation was inevitable, and the fate of the manat was uncertain, but today the national currency is gradually taking its fundamental cost.

The devaluation of the manat due to the negative influence of the processes in the global financial markets was also reflected in the country's banking sector and the investment coming to Azerbaijan, and it has become necessary to maintain the competitiveness of the non-oil sector. As a result of targeted measures in the country's foreign exchange market there is stabilization," said the official.

According to the Central Bank of Azerbaijan, in January-April 2016, Azerbaijan purchased $ 1.19 billion of cash that is 5.4 times less than in the same period last year ($ 6.5 billion). The volume of foreign exchange operations in the country in January-April 2016 exceeded $ 1.2 billion (+ 20%).

The purchased currency included 191.5 million Euro (minus 2.3 times), 12.5 million Pounds (minus twice) and 716,200,000 Russian rubles (minus 28.4%).

The sold currency included 117.78 million Euros (minus 10.22 million), 1.7 million Pounds (+ 745.5 thousand) and 2.96 billion Rubles (+ 500 million).

Recall that in the past year because of the almost four-fold fall of stock prices of oil and hydrocarbons in general, linked to the "black gold", in Azerbaijan there were two devaluations (21 February and 21 December). In addition, on December 21 the Central Bank of Azerbaijan announced the transition to the regime of floating exchange rate of the manat.

Due to the decline of public confidence in the national currency, $ 12.3 billion (+ 31.27%), about 1.1 billion Euro, 64.1 million Pounds and almost 2.4 billion Rubles were purchased in Azerbaijan in 2015. --17D-