Azeri experts state threat of new manat devaluation

Despite a relative stability of the currency exchange market of Azerbaijan, the country has a high risk of a new devaluation of the national currency – the manat, said Natig Jafarli, an economist. Gubad Ibadoglu, the head of the Economic Research Centre, believes that only support of the state can save the country's banking sector from collapse.

The "Caucasian Knot" has reported that on December 21, 2015, the Central Bank of Azerbaijan (CBA) transferred the exchange rate of the manat versus US dollar and euro into the floating mode; and then it dropped by almost half. Azerbaijan saw a commodity price increase; and most commercial banks stopped selling dollars and euros.

Natig Jafarli, Executive Secretary of the movement "Republican Alternative" (ReAl), has explained that the government and the CBA are trying to stabilize the economy by tight monetary and administrative measures, which may give only a short-term effect.

He stressed that it will not be possible to artificially restrain the price growth for foodstuffs and essential goods for a long time.

The government has drafted a new concept of economic reforms, Natig Amirov, an assistant to the president, said in an interview to the state "AzTV" Channel.

According to his version, the first direction has to do with achievement of stability in financial markets and restoration of liquidity of the manat; the second one – with promoting exports. The third direction is the formation of the domestic market, aimed to reduce the dependence on imports.

Meanwhile, the residents of Baku, interviewed by the "Caucasian Knot", have complained about the price growth on foodstuffs and medicines. At the same time, they noted that prices on clothes have remained at the same level.

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