Ilham Aliyev: Manat Rate Decrease Reasonable, Speculators to Be Punished

Arriving on Tuesday in the city of Mingechevir, Ilham Aliyev made a statement on the situation of the manat. Speaking to the doctors at the local hospital, he tried to explain the reasons for the collapse of the manat. According to him, this is a consequence of negative global processes and Azerbaijan is part of the global economy. "But we have learned how to protect ourselves and negative developments have had little impact on the situation in Azerbaijan,"  he immediately added.

He further said that in 2006 there was a monetary reform and the manat was equated to the US dollar. "For ten years the manat strengthened against the dollar, which was the success of our economic policy, but the events in the neighboring countries and especially the sharp depreciation of their national currency could not avoid affecting us. And then there was a sharp drop in oil prices that has affected our revenues. In such a situation, the constant growth rate of the manat began to have a negative impact on our economic development. Therefore, it was decided to make the manat a bit cheaper," admitted Aliyev.

"Let no one be surprised, as I said then that the manat would rise too. Then the CBA made a statement that the rate would gradually decrease to the end of the year and this was the first signal and the people had to understand it. But people rushed to the exchangers and we saw that a massive purchase of dollars began. Every day USD 500 million was thrown into the market. If it had continued, by the year end the CBA reserves would have run out. In this situation, it was decided to reduce the rate of the manat," Aliyev said.

He further threatened speculators and unscrupulous dealers to severely punish those who artificially inflate prices in the shops. "There is a monitoring and we will strictly punish such people," he threatened.

Finally, he promised that successful economic policy will be continued in the future.  -0-