Central Bank Backpedaled?

On April 9, the Central Bank of the country slightly lowered the dollar to the manat. This happened after the growth of the dollar on April 8 and was the cause of new hype and panic due to the increased demand for foreign currency.

Today, the Central Bank issued a statement that the appreciation of the dollar on April 8 was not related to the further devaluation of the manat. This was a result of formation of the manat rate on the basis of the currency basket - the dollar and the euro. Depreciation of the euro has led to the increase in the dollar, the report said.

On April 9 the manat rate was set by the Central Bank at the level of $ 1 – 1. 0515 AZN, which is two thousandths below the 8 April index.

At the same time, the euro fell to the manat also by scanty 69,000th and 1 euro was 1.133 AZN.

However, in exchange offices the dollar is sold at ​​1.07 manat, as yesterday. After a slight strengthening of the dollar on April 8, the citizens began to actively buy foreign currency, fearing another wave of devaluation.

All this shows that people do not trust the government's assurances of stability of the national currency and tend to translate their savings into dollars or euros. The sharp devaluation of the manat against the US dollar by 34% carried out by the Central Bank in February has undermined public confidence in the financial policy of the authorities. -02D-