The CBA downs the rate of manat to 33%

On February 21, 2015 the official exchange rate of the dollar against the manat was set at $1 - 1.05 manat, and the euro - 1, 19 manat, stated in the Central Bank of Azerbaijan (CBA)."This decision was made in order to create an additional incentive for the branch of the national economy, improve competitiveness and export potential, as well as provide strategic stability of the balance of payments and international solvency of the country," reads a statement posted on the website of the state news agency "Azertaj."

Correction of the  rate of manat also aims to neutralize the effect of a significant depreciation suffered by the national currencies of most countries - trade partners of Azerbaijan. The  CBA will continue to participate in the foreign exchange market within a specific corridor, the report said. Thus, the rate of the manat to the dollar collapsed by almost 33.5%., and the euro - 30%.

Such a decision directly contradicts previous assurances by the authorities and the  CBA, who spoke about the slow and discreet lowering of the manat to bring it into line with the situation on the world market. Today's decision will increase panic in the financial markets, a sharp demand for the dollar and the euro. Import will also become much more expensive. Officials have not yet given any  comments.—06D-