Tag Archives: economy

Inflation rising in Tajikistan

NOV. 26 2014 (The Conway Bulletin) – Prices of basic food products are rising in Dushanbe, local media reported, because of a fall in the value of the Tajik somoni. Tajik news agency Asia-Plus reported that a bag of flour now sold at 175 somoni, up from 165 somoni a week earlier, and that vegetable oil cost 44 somoni up from 40 somoni.

ENDS

(News report from Issue No. 211, published on Dec. 3 2014)

Bosch opens Georgia warehouse

NOV. 27 2014 (The Conway Bulletin) – German engineering company Bosch said it would open a 1,600sqm warehouse, that’s about a third of the size of a football pitch, in Tbilisi to supply power-drill equipment to Georgia, Armenia and Azerbaijan. The opening of the Bosch warehouse is a vote of confidence in the region’s economy.

ENDS

(News report from Issue No. 211, published on Dec. 3 2014)

Kazakhstan to join WTO

NOV. 25 2014 (The Conway Bulletin) – Kazakhstan is on the brink of accession to the World Trade Organisation (WTO), the WTO’s director-general, Roberto Azevedo, said in a report. Kazakhstan has been negotiating to join the WTO since the late 1990s and joining the group would give its credibility a boost.

ENDS

(News report from Issue No. 210, published on Nov. 26 2014)

Kyrgyzstan’s EaEU accession quickens

NOV. 21 2014 (The Conway Bulletin) – Russia’s lower house of parliament passed a law that ratified deeper economic cooperation with Kyrgyzstan, part of the process towards Kyrgyz accession into the Kremlin-led Eurasian Economic Union (EaEU). The deal will mean a $1b windfall in cash and loans from Russia to Kyrgyzstan.

ENDS

(News report from Issue No. 210, published on Nov. 26 2014)

IMF warns of Azerbaijan’s oil dependency

NOV. 21 2014 (The Conway Bulletin) – Azerbaijan’s economy is overly dependent on oil revenues, making it vulnerable to fluctuations in energy prices, the IMF said. The warning is particularly pertinent now as oil prices have fallen around 40% over the last few months.

ENDS

(News report from Issue No. 210, published on Nov. 26 2014)

Armenia to defend currency

NOV. 24 2014 (The Conway Bulletin) – Armenia’s Central Bank said it was prepared to spend millions of dollars propping up its currency, the dram, despite increased pressure to devalue.

Like other currencies across the South Caucasus and Central Asia region, falling oil prices and a devaluation in Russian rouble are pressuring the dram.

On Monday, Nov. 24, the dram was trading at 435 to $1, down 4% from Friday.

“The Central Bank reserves are enough to prevent any artificial fluctuations of the rate and secure financial stability,” the Central Bank said in a statement.

Perhaps but the warning signs are increasing and even the Central Bank’s statement smacks of desperation.

In the last three weeks, Reuters reported, the Armenian Central Bank has spent over $60m defending its currency.

Armenia is tied into Russia, politically, economically and emotionally. It has agreed to join the Kremlin’s Eurasian Economic Union in January and Russian business virtually runs the economy.

With oil prices and the rouble falling further it can only be a matter of time before currencies such as the dram also tumble again.

ENDS

(News report from Issue No. 210, published on Nov. 26 2014)

European Games to cost $8b Azerbaijan

NOV. 24 2014 (The Conway Bulletin) – Azerbaijan will spend an estimated $8b putting on the inaugural European Games next year, media reported, making it one of the most expensive international sports tournaments.

Most people in Azerbaijan support the government’s drive to host the games, which it will also use to showcase the country, but they also told the Bulletin that $8b was too extravagant and that an array of social problems, from low pensions to still crumbling healthcare and education systems needed the cash more urgently.

“This is ridiculous,” said Shahin Gasimov, 64, a retired teacher.

“I receive $200 pension a month. Spending $8b on the Games is not fair.”

Guler Hajiyeva, 22, a graduate student agreed. She said: “I’m sure that we did not need this in Baku. What we need is a better healthcare system, a quality education.”

However, Rauf Gulamov 32, an entrepreneur said that he thought the European Games will improve Azerbaijan’s international standing.

“I don’t know how much money would be fair to spend for this games. Maybe $8b is a lot, maybe not but I am sure that we need the Games and that they will be good.”

The Baku 2015 European Games will feature 16 Olympic and four non-Olympic sports. Alongside traditional sports such as athletics, swimming and gymnastics, new sports such as 3×3 basketball, beach soccer and karate will also be showcased.

ENDS

(News report from Issue No. 210, published on Nov. 26 2014)

Kazakhstan’s Alliance Bank completed debt deal

NOV. 19 2014 (The Conway Bulletin) – Kazakhstan’s Alliance Bank has completed a $1.2b debt restructuring deal and will now merge with Temirbank and ForteBank to become one of the biggest lenders in the country, Reuters reported. The government bought a stake in Alliance Bank in 2009. Temirbank and ForteBank are owned by billionaire Bulat Utemuratov.

ENDS

(News report from Issue No. 210, published on Nov. 26 2014)

Tajikistan’s somoni falls

NOV. 15 2014 (The Conway Bulletin) – The Tajik somoni currency has fallen by 7% against the US dollar this year and 2% in the last week, mainly due to the falling value of the Russian rouble, threatening its economic stability. Remittances from Russia account for around half of Tajikistan’s GDP.

ENDS

(News report from Issue No. 209, published on Nov.19 2014)

Stans Energy to quit Kyrgyzstan

NOV. 13 2014 (The Conway Bulletin) – Canadian miner Stans Energy said Kyrgyzstan was trying to revoke its licences for two rare earth mines that it owns. The row is part of a long-running dispute between Stans Energy and Kyrgyzstan. Stans Energy has said that it will quit Kyrgyzstan altogether, dealing another blow to the country’s investor image.

ENDS

(News report from Issue No. 209, published on Nov.19 2014)