The excitement in the foreign exchange market of Azerbaijan calms

The excitement in the foreign exchange market of Azerbaijan  has calmed. On Thursday morning, many currency exchange offices in Baku work as usual, selling and buying currency  as usual without any restriction, at least in the range of several thousand. However, the exchange offices sell, for  some reason,  only one hundred dollar  banknotes. The dollar  is sold at 1,052/1,054 AZN.

The commercial banks rate was higher - 1,057 manats per 1 US dollar.

The official rate of the Central Bank of the country totaled 1.0475 manats  per 1 US dollar.

Compared to August 26, the dollar rose by 0.0008 points.

Euro exchange rate totaled 1.1885 manats for 1 AZN,  and fell to 0.0174.

Observers explain the stabilization of the situation on the market  by the active intervention of the CBA, seeking to prevent a devaluation that could ultimately undermine the credibility of the manat and the country's banking sector. On the other hand, it is also important in terms of maintaining political stability before the parliamentary elections to be held in early November. In addition, a slight increase  in the past two days for oil prices also gives some confidence to the Government in support of the exchange rate of manat.

According to unofficial information, the Central Bank   is calling for sharply lowering deposit rates on loans - up to 3-4% per annum. In addition, the CBA toughens measures to control money flows through banks.

By the instruction signed on 12 August, the banks were ordered to request the depositors or customers to open accounts and make transfers, data on place of work. However, the customer are not required  reference, and responsibility for the accuracy of information entrusted to them.

All these measures are cosmetic. Independent experts agree that without liberalization, elimination of monopoly, ensuring healthy competition it will be impossible to solve fundamentally  the problems of the financial market and the economy of Azerbaijan.—06D-