CBA makes sharp devaluation of national currency

Today, the Central Bank of Azerbaijan (CBA) has set the official exchange rate of 1.05 manats for 1 US dollar, against 0.78 manats for 1 US dollar on February 20. The CBA's decision will tell on the real incomes of the population, Azerbaijani experts assert.

Late last year, the CBA began making major currency interventions in order to support the national currency. As a result, the CBA's currency reserves dropped in January by 1.077 billion US dollars. Thanks to these measures, the exchange rate of the manat against the US dollar has not changed since December 2014, fluctuating within 0.7844-0.7845 manats for one US dollar.

According to the CBA, within one day, the exchange rate of manat fell against the dollar by almost 33.5%, and against the euro – by 30%. Since February 21, 2015, the official exchange rate of the dollar against the manat was set at 1 USD = 1.05 manats; and 1 euro = 1.19 manats. This is stated in the release of the CBA disseminated today.

Azerbaijani experts treat negatively the CBA's decision. In their opinion, it undermines the trust of the Azerbaijani population in the country's authorities.

Full text of the article is available on the Russian page of 24/7 Internet agency ‘Caucasian Knot’.