Low oil prices caused reduction of Azerbaijan’s currency resources by another $1.2 billion
During January 2016 resources of Central Bank of Azerbaijan (CBA) reduced by $618,200,000 or by 12.32% and by February 1, 2016 they totaled $4,398,500.
Last year State Oil Fund of Azerbaijan (SOFAZ) has sold currency worth $600 million at the local market.
Over $1.2 billion was spent in January 2016 from the currency resources of the country to support manat.
Spending of such an amount of money to support national currency rate was caused by very low oil prices in January. According to SOCAR, in January 2016 average export price of Azerbaijan BTC FOB Ceyhan oil was $32.33. A year ago the price was $48.00 per barrel in January.
SOFAZ has not disclosed results of its operations for 2015 and its assets by early this year are unknown. Judging by all, the Fund has about $33 billion.—0—
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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