Excitement Around Devaluation Continues (UPDATED)

A day after the 47% devaluation of the manat, the sales network continues to react violently. As before, the doors of shops of electronics and appliances, where there is a re-evaluation of goods, are closed.

According to observations of Turan, sharply increased the price of imported goods and food products - fresh fruits, vegetables, dried fruits, sweets and so on. On average, prices increased by 30-50%.

The largest increase is for household appliances, electronics and mobile phones, where the trade has not stopped.

Most of exchange offices are closed or only buy dollars and euros, but do not sell them.

The shopping sites have begun laying off workers, and some stores are going to close down completely.

During the conversation with the sellers and owners of retail properties, they said if the authorities do not eliminate corruption in the customs, the trade will die or will be seriously weakened.

"Now the customs has doubled the size of bribes for the imported goods. Until now, for a container of imported goods they demanded a bribe of 4,500 AZN, and since yesterday, this amount increased to 8,000 manats," said the owner of a facility, who refused to give his name.

Note that on December 22 the central bank raised the dollar, compared to yesterday. So, if on the first day of the devaluation the exchange rate was at the level of $ 1 - 1.55 manat, now the dollar is worth 1.5511 manat.

The euro also rose from 1.68 to 1.6939 manat. -03B-

2015 December 21 (Monday) 15:08:23

The excitement, which began today in connection with another devaluation of the manat, continues. Large network stores office began revaluation of goods.  In supermarkets  began  revaluation of imported products, which significantly decreased  since morning. Citizens  are actively buying goods and products the prices for which have not increased. In a number of pharmacies imported medicines are sold at the same prices, but the choice of drugs reduced. The prices for mobile phones also increased. Car dealers  have not announced yet new prices.  The situation in the  market of construction materials and housing prices respond to changes in the exchange rate not so fast.

While not react to the devaluation of the new Urban markets selling local products also have not reacted yet to the   new devaluation of manat.  -02В-

2015 December 21 (Monday) 12:37:12

In connection with the devaluation of the manat many shopping facilities and pharmacies in Baku stopped their work. This is probably due to the change of price tags in the direction of their increase. Many exchange offices have closed.

Recall that on December 21, CBA has decided to move to a floating exchange rate of the manat. At the same time, the official rate of the manat against the US dollar and the euro fell by almost half. So, on December 21, 1 dollar is worth 1.5500 AZN and EUR 1 - 1.6850 AZN. -0-

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The Central Bank of Azerbaijan (CBA) has a true tradition – as in February, it put people before the fact, announcing this morning that it moves to a floating exchange rate of the manat.

The main regulator does not consider the population, which is a symptom of lack of control of financial flows. According to its official information, the decision was made, taking into account the strengthening of long-term shocks in the foreign economy, to balance payments, save foreign exchange reserves in the country at a critical level and competitiveness of the national economy in the international arena.

The current rate of the manat (AZN 1.5 to $ 1) tomorrow could be even lower against the world currencies - and this is due to the fact that the government does not take into account the fundamental factors that determine the supply and demand, and the creation of the real economy. As a result, the surplus of foreign trade and foreign exchange earnings to the country sharply reduced.

Recall, the sharp decline in oil prices in July increased pressure on the rate of the manat and currency markets. At the same time the continuing devaluation in countries such as Russia and other neighboring countries has had a negative impact on the competitiveness of the national economy. In connection with the emerging conditions there is a need to bring the foreign exchange market and the exchange rate of manat in line with oil prices.

Azerbaijan's transition to a floating rate is a forced measure, which is explained by the processes in the world currency market. And, unfortunately, what we are witnessing now does not reflect the real value of the manat. --- 17D-