Tag Archives: economy

Tajik C.Bank spends half reserves defending currency

>>Tajik CBank can’t afford aggressive defence of somoni again>>

JAN. 20 2015 (The Conway Bulletin) — Russia’s rouble crisis is pushing Tajikistan to the brink of bankruptcy. The Tajik Central Bank has said that it spent half the country’s reserves last year trying to prop up its currency against the falling rouble.

These are worrying times for Central Asia’s governments. A combination of falling oil prices and Russia’s economic turmoil is pressuring their own finances.

Remittances from Russia have fallen sharply in value over the past six months or so, undermining economies in Tajikistan and Kyrgyzstan especially.

Central Banks have been spending heavily to try to bolster their currencies against a falling Russian rouble but this has proved difficult.

Despite spending half its national reserves — there is now less than $500m left in the Central Bank’s reserves — the value of the Tajik somoni has still fallen over 10% against the US dollar. Inflation has also risen.

All the signs are that 2015 will be complicated too. What the Tajik government can’t afford, though, is another costly battle to defend the somoni.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Uzbek car sales to Russia drop

JAN. 19 2015 (The Conway Bulletin) — GM Uzbekistan sold 38% fewer cars in Russia in 2014 than it did in 2013, media reported quoting the European Businesses Association. The data highlights the impact that the falling rouble and the economic turmoil in Russia is having across the former Soviet Union. Russia is GM Uzbekistan’s biggest market.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Armenian economy to stagnate

JAN. 15 2015 (The Conway Bulletin) — The inter-government European Bank for Reconstruction and Development (EBRD) said the fall in the Russian rouble and a general economic downturn will knock Armenia’s economy into a recession this year. Armenia’s economy is particularly tied into Russia’s fortunes.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Uzbekistan retains strong growth outlook

JAN. 15 2015 (The Conway Bulletin) — Despite the downturn in Russia’s economy, the European Bank for Reconstruction and Development (EBRD) predicted decent growth for Uzbekistan’s economy in 2015 of around 7%. The EBRD heavily slashed growth rates of Uzbekistan’s neighbours. Uzbekistan’s economy is more sheltered than its neighbours.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Falling gas prices to hit Turkmenistan

JAN. 19 2015 (The Conway Bulletin) — The drop in the price of gas and oil will hit Turkmenistan’s economy, although it will still grow by nearly 10% in 2015, the European Bank for Reconstruction and Development (EBRD) said in its updated growth forecasts. Turkmenistan’s economy is protected somewhat by contracts with China.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Kumtor to produce 10% less gold in 2015

JAN. 19 2015 (The Conway Bulletin) — Centerra Gold, the Toronto-based mining company, said it will produce around 10% less gold from its Kumtor gold mine in eastern Kyrgyzstan this year. The company didn’t specify why gold production at Kumtor would drop this year. This is significant, though, as Kumtor is Kyrgyzstan’s single biggest industrial asset.
ENDS

(News report from Issue No. 215, published on Jan. 21 2015)

Azerbaijani Central Bank spends heavily

JAN. 13 2015 (The Conway Bulletin) — Azerbaijan’s Central Bank said it spent $1.13b in December supporting its national currency — the manat — counter a falling Russian rouble and a drop in global oil prices. This represents about 8% of its total currency reserves.

ENDS

(News report from Issue No. 214, published on Jan. 14 2015)

Kazakh property market shrinks

>>Currency devaluation inflated early data>>

JAN. 13 2015 (The Conway Bulletin) — The number of property deals in Kazakhstan dropped by over 13% last year, the State Statistics Committee data showed, more evidence of a downturn in the economy.

The biggest drops in the number of property transactions were in North Kazakhstan — a fall of 25% in the number of property deals in 2014 compared to 2013 — and the Akmola, Almaty and Karaganda regions which all had a fall of around 20%.

Only some of the western regions, experiencing something of an oil boom, enjoyed a small increase in the property market in 2014.

This is all bad news for Kazakhstan which is trying to keep its tenge currency strong despite a fall in the price of oil and a drop in the value of the Russian rouble.

Earlier, the shrink in Kazakhstan’s property market had been disguised by figures which showed that the value of the deals had actually increased by over 10% in 2014. A currency devaluation of 20% in February 2014 inflated the value of transactions in the Kazakh market.

ENDS

(News report from Issue No. 214, published on Jan. 14 2015)

Car imports from Russia to Kazakhstan rise

JAN. 13 2015 (The Conway Bulletin) — Car imports to Kazakhstan from Russia have jumped in the past two months to 2,859 from 2,005 during the same period in 2013, Kazakh media reported quoting government officials. The upturn is linked to the currency discrepancies. The rouble has nose-dived but the Kazakh Central Bank has kept the tenge strong.

ENDS

(News report from Issue No. 214, published on Jan. 14 2015)

Dunkin’ Donuts opens in Tbilisi

JAN. 13 2015 (The Conway Bulletin) — Georgians are now able to buy Dunkin’ Donuts in Tbilisi. One of the United States’ biggest fast food franchises opened its first two stores in Tbilisi, giving the economy a major PR scoop.

Other than Russia, Georgia is the only country in the former Soviet Union that Dunkin’ Donuts has opened a franchise.

“Opening Dunkin’ Donuts in Georgia proves that there is an attractive business climate in this country and it is easy to do business here,” US ambassador Richard Norland said at the opening of the stores.

Georgia’s economy has rebounded strongly from 2008 when it collapsed after a brief war with Russia. Since then foreign investment and exports, mainly to Russia, have picked up pace.

The Wissol conglomerate, which has close connections with the Georgian business and political elite, brought Dunkin’ Donuts to Georgia. Last year it also brought Wendy’s, another US fast food chain to Georgia.

The vice-president of Dunkin’ Donuts in Europe, Carlos Vidal, said that Wissol had the experience to launch a brand successfully in Georgia.

“Wissol Group owns knowledge of establishment of retail business and management,” he said.

“Together with Wissol Group we have ambitious plans in Georgia because we know that the population of the country is ready to receive the unique experience of Dunkin’ Donuts and to become everyday customer of sandwiches, donuts, bakery and a variety coffee products.”

ENDS

(News report from Issue No. 214, published on Jan. 14 2015