From December 21 the manat depreciated against the dollar and the euro by nearly half.
On Monday, the official exchange rate of the US dollar amounted to 1,550 manat, which is 47.63% more than on 18 December.
The euro increased by 47.88% or AZN 0.5456 to AZN 1.6850.
CBA announced the transition to a floating exchange rate of the manat. These measures are motivated by a sharp drop in oil prices and the processes in the "global economy", the need to balance the payments, save foreign exchange reserves of the country and the international competitiveness of the national economy.
From now on, the rate of the manat will be formed primarily in accordance with the fundamental determinants of supply and demand in the foreign exchange market. Participation of CBA in the foreign exchange market will be in accordance with the present regime. At the same time, to ensure the safety of bank deposits and other deposits comprehensive measures will be taken for the financial stability of banks, increasing their liquidity, improving deposit insurance system," CBA stated. -06D--
Economics
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The U.S. Energy Information Administration (EIA) forecasts that Azerbaijan’s average daily oil production will reach 640,000 barrels per day (b/d) in 2025, aligning with predictions made in September, according to the October EIA report "Short-term Energy Outlook."
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The Central Bank of Azerbaijan (CBA) and the Islamic Chamber of Trade and Development (ICCD) held discussions on the future of Islamic finance in the country, signaling growing interest in Sharia-compliant banking solutions.
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Food prices in Azerbaijan’s capital, Baku, increased by 5% during the first nine months of 2024, highlighting rising inflationary pressures in the domestic market, the Turan agency reported.
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Global grain prices continued their downward trajectory in August, as the FAO grain price index slipped 0.5% from July and a sharp 11.9% year-on-year decline, reflecting weakening demand and intensifying competition among major exporters. Wheat prices were particularly impacted by higher-than-anticipated production levels in Argentina and the United States, exerting additional downward pressure on the international market.
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