Tag Archives: Azerbaijan

Azerbaijan’s Central Bank cuts interest rates

JULY 10 2015 (The Conway Bulletin) – Azerbaijan’s Central Bank cut its key interest rate by 50 basis points to 3% to give its non-oil sector a boost.

Like other countries in the region, Azerbaijan has been trying to cope with an economic downturn triggered by a fall in Russia’s economy and a drop in the price of oil.

The Central Bank said Azerbaijan’s economy had stabilised since it devalued its manat currency by a third in February.

“The Azerbaijani economy remains resilient amid recent processes in the global economy and in the region continuing its stable growth,” the Azerbaijani Central Bank said in a statement.

“The monetary policy can be further eased given the acceptable level of inflation and dynamics of money supply.”

The cut in interest rates, though, is likely to put more pressure on the manat currency. This was momentarily relieved by the devaluation. Since then, data from the Central Bank has shown it has continued to spend heavily propping up its currency, although there was a rebound over the past few months which may have prompted the interest rate cut. Azerbaijan’s foreign currency reserves now measure $8.5b compared to 13.7b at the end of 2014.

Azerbaijan’s economy is skewed towards oil and gas.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Azerbaijani president rails against Western criticism

JULY 13 2015 (The Conway Bulletin) – In a televised speech to his cabinet, Azerbaijani leader Ilham Aliyev said Western governments and human rights groups had no right to criticise Azerbaijan for a clampdown on civil rights.

In seemingly combative mood, Mr Aliyev took aim at the German parliament, the Bundestag, which had just passed a motion criticising Azerbaijan.

“Is the German Bundestag master of the world, ruler of the world, should everyone obey them?” Mr Aliyev said. “We don’t want anything from them, while they, on the contrary, need our gas, contracts, oil and our activity in this region.”

Mr Aliyev, increasingly vocally, rails against the West for what he has said is unfair criticism of his government.

Baku hosted the inaugural European Games last month, an event that Mr Aliyev had hoped would showcase Azerbaijan. Instead it was used as a lightning rod by critics

Azerbaijan has evicted several Western institutions, including the US-funded Radio Free Europe/Radio Liberty and the US Peace Corps, a teaching programme for young Americans.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Azerbaijan’s oil exports fall

JULY 16 2015 (The Conway Bulletin) – Azerbaijan’s oil exports fell by 2.5% in the first half of 2015 because of a drop in production, Reuters reported quoting a source in the state statistics committee. Oil and gas exports make up 75% of government revenue.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Gold production rises in Azerbaijan

JULY 13 2015 (The Conway Bulletin) – London-listed Anglo Asian Mining increased gold production by a third in the first half of the year. Anglo Asian Mining produces gold at Azerbaijani mines in which the government also owns a stake. If Anglo Asian has increased its gold production, the government will also have increased its revenue.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Azerbaijani manat stays stable

JULY 16 2015 (The Conway Bulletin) – Azerbaijan’s Central Bank chief Elman Rustamov told local media that he expected the manat currency to remain stable if oil prices steadied at around $50/barrel. The Central Bank devalued the manat by a third in February.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Azerbaijani Central Bank chief reassures on growth

JULY 15 2015 (The Conway Bulletin) – Elman Rustamov, the Azerbaijani Central Bank chief, said that at current oil prices, Azerbaijan’s economy will continue to grow. Mr Rustamov may have been trying to reassure a jittery public. Azerbaijan’s economy has been coping with the fallout of a drop in oil prices and a downturn in Russian economic prospects.

ENDS

(News report from Issue No. 240, published on July 16 2015)

Currency transactions rise in Azerbaijan

JULY 9 2015 (The Conway Bulletin) – Azerbaijan’s Central Bank reported that foreign currency exchanges increased by more than 50% in the first six months of the year compared to the same period in 2014. In Feb., Azerbaijan devalued its manat currency by a third.

ENDS

(News report from Issue No. 239, published on July 9 2015)

US embassy denies it is plotting a coup in Azerbaijan

JULY 9 2015 (The Conway Bulletin) – Relations between the United States and Azerbaijan appeared to have sunk to a new low after Azerbaijani media accused US ambassador Robert Cekuta of inciting a revolution.

The US embassy published a rare statement refuting the allegations, saying that meetings with opposition groups and media were part of its ongoing mission to listen to all sides of Azerbaijan’s community.

“The Ambassador also continues meeting extensively with top figures in Azerbaijan’s government,” the US embassy statement said.

“The US Embassy is not plotting a coup in Azerbaijan. Nor is it instructing or financing any political party in the country.”

Relations have nose-dived in the past year over Azerbaijan’s crackdown on civil society. Azerbaijan has responded to criticism by accusing the US and Europe of mounting a smear campaign.

The US Peace Corps, a US- government funded organisation which sends teenagers and young adults abroad to live and teach English, has quit Azerbaijan, as has the US-funded Radio Free Europe/Radio Liberty. The US has also criticised Azerbaijan for jailing opponents of President Ilham Aliyev.

ENDS

(News report from Issue No. 239, published on July 9 2015)

Azerbaijan bans Russian singer from visiting the country

JULY 7 2015 (The Conway Bulletin) – Azerbaijan said it had added Russian opera singer Lyubov Kazarnovskaya to the list of people barred from visiting the country because she had recently travelled to the disputed region of Nagorno- Karabakh. Azerbaijan and Armenia are still officially at war over the region.

ENDS

(News report from Issue No. 239, published on July 9 2015)

Azerbaijani oil fund starts buying Chinese yuan

JULY 3 2015 (The Conway Bulletin) – Azerbaijan’s State Oil Fund, or SOFAZ, said that it had bought $500m worth of Chinese yuan, part of a policy to diversify its assets.

The purchase will also endear Azerbaijan to China, another unsaid reason for SOFAZ to buy yuan. China has been boosting its interest in the South Caucasus over past few years and Azerbaijan is looking for more allies.

“In order to further broaden and diversify the currency basket, SOFAZ has started making investments in Chinese Yuan,” SOFAZ said in a statement on their website.

And that wasn’t all. SOFAZ said it was looking at further exposure to China.

“Going forward, SOFAZ is planning to gain exposure to Chinese equity markets,” it said.

Azerbaijan’s oil fund is important because at $37b it is one of the biggest investment funds in the world. Its mission is to act as a social fund for the government to dip into in special circumstances and to fund large infrastructure projects.

It has begun to diversify its investments and, over the past couple of years, has built up a property portfolio in Europe and Asia.

It has been planning to buy into China ostentatiously to further diversify its investments.

ENDS

(News report from Issue No. 239, published on July 9 2015)