Azerbaijan devalues currency by a third over falling oil price

Azerbaijan's central bank decided on 21 February 2015 to devalue the country's currency, Manat, by 33.5% to the dollar and by 30% to the euro. Media reports mentioned the decreasing oil prices and the economic recession in Russia as reasons behind the decision.

The central bank had already abandoned the Manat's dollar peg on 16 February 2015 and begun using a dollar-euro basket to manage the exchange rate.

• Primary Source

Azerbaijan: Central Bank of the Republic of Azerbaijan: Press Release, 16.02.15: New operational framework for exchange rate policy http://en.cbar.az/releases/2015/02/16/new-operational-framework-for-exchange-rate-policy/

Bloomberg, 23.02.15: Azerbaijan’s Manat Devaluation Threatens Banks, Moody’s Says http://www.bloomberg.com/news/articles/2015-02-23/azerbaijan-devalues-currency-as-oil-s-decline-hurts-exports

ESO: Background information: Russia downgraded to junk status for first time in decade http://www.europeansources.info/record/russia-downgraded-to-junk-status-for-first-time-in-decade/

ESO: Background information: Falling oil prices should help Europe’s ailing economies, but the wider implications of the price drop remain to be seen http://www.europeansources.info/record/falling-oil-prices-should-help-europes-ailing-economies-but-the-wider-implications-of-the-price-drop-remain-to-be-seen/

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