Press Review 01/06/2016

The US-Azerbaijani relations, the "recovery" of the International Bank, the banking system, and the forecasts of new devaluation are the main topics of today's press.

The official Azerbaijan newspaper, analyzing the US-Azerbaijani relations, writes that America has declared Azerbaijan "energy leader."

The newspaper also writes that America is a major economic and military power and political monopoly. US interests are not limited to the planet Earth, as they are trying to influence the Galaxy. No one should fall into the "black list" of the White House, because it can negatively affect the whole country, the newspaper says, claiming that Azerbaijan and America have partner relations.

Azadlig gives comments by the expert Rovshan Agayev on the events around the International Bank, noting the lack of transparency in the process. He believes the authorities have to disclose all the details of the public steps for the withdrawal of the main bank of the country out of the deep crisis.

Novoye Vremya writes that dollarization of the banking sector in Azerbaijan is gaining momentum, and the authorities cannot do anything to stop this.

This situation does not leave indifferent the international rating agencies. Azerbaijan's banking system will need additional capitalization, the article Reforms to Make Banks Healthier says.

In the present situation it is difficult to achieve the capitalization of the banking system, because the financial support to banks by the state has decreased significantly. By the way, the dollarization of the banking system is also a result of ill-considered actions of the main financial regulator of the country. In one way or another, it cannot do without radical reforms.

Yeni Musavat publishes an article predicting new devaluation in June. The expert Akram Hasanov considers the depreciation of the dollar as a preparation for that. The current rate of the manat is artificial, since the AZN supply is little. However, the Central Bank will sooner or later have to increase the AZN money supply, and for this it is necessary to lend, otherwise the situation will get worse, the expert says.

The expert Vugar Bayramov also believes the national currency cannot be strengthened for a long time.

Leave a review


Follow us on social networks

News Line