Dollar still falls and euro to Azerbaijani manat rises

29/03/2015 16:55 AST

The Central Bank of Azerbaijan has allowed decreasing the exchange rate of the US dollar and increasing the rate of euro and other soft currencies.

The CBA informs that on 29 March 2015 the official exchange rate was set at the level of AZN 1.0484 to the US dollar versus AZN 1.0486 on 19 March and AZN 1.05 on 21 February. As a result, from the moment of refusal from manat pegging to the dollar and introduction of bi-currency basket (on 16 February) when the exchange rate was at the level of AZN 0.7844 to the US dollar, the Azerbaijani manat declined by 33.656%.

On 29 March the euro rate was set at the level of AZN 1.1416 to the manat versus AZN 1.1290 on 19 March and AZN 1.195 on 21 February.

Although the CBA has not formally announced the structure of the currency basket, it can be supposed that the basket is formed by the US dollar (80%) and by euro (20%). Basing on this assumption, the value of the bi-currency basket for today is AZN 1.06704 to a currency unit against AZN 1.06468 on 19 March and AZN 1.079 on 21 February when the manat was devalued.

In other words, since the introduction of the currency basket the Azerbaijani manat has been devalued (the ratio of the rate of the base currency before 16 February to the value of the bi-currency basket for 19 March) by 36.033%. At that, the bi-currency basket, which started at the level of AZN 0.80664, increased in price by 32.282%.

By early 2014 the official exchange rate was at the level of AZN 0.7845 to the US dollar, early in 2013 – AZN 0.7850, early in 2012 -AZN 0.7865, and early in 2015 - AZN 0.7844.

ABC.AZ