Devaluation Moves into Creeping Regime

While the Central Bank of Azerbaijan (CBA) denies rumors about the upcoming AZN devaluation, third in the last 12 months, the national currency has depreciated against the dollar and the euro by 15-20 kopecks in the last two days.

"The rumors that there will be a new devaluation of the manat have no reason. The rate of the manat against the US dollar is based on the new exchange rate policy - supply and demand. The central bank sells currency at auctions," the Central Bank stated on Thursday.

"In addition, work is underway to strengthen the financial stability of the banking sector, including the improvement of the deposit insurance system," the CBA assured.

However, contrary to the reassuring statements by the CBA, a creeping devaluation continues.

If on the morning of January 7 exchangers and banks sold the dollar for 1.66-1.68 AZN, while the euro - for 1.82 manat, by the end of the day the foreign currency increased by 5-7 kopecks.

On the morning of January 8 the dollar was already sold for 1.82 manat, and bought for 1.72 AZN.

The euro is already sold for nearly 2 manat, and bought for 1.85.

Thus, since the second devaluation of December 21, EUR and USD have risen more than by 19%. -06D-