FEB. 10 2017 (The Conway Bulletin) — The Azerbaijani manat and the Georgian lari jumped by 6.6% and 5.7% in the week to Feb. 9, a sharp jolt against their predominantly downward trajectories.
The manat was valued at 1.82/$1 on Feb. 9, a one month high. The lari was valued at 2.63/$1, a two- month high.
In Baku, some currency analysts said that this was the start of a realignment of the national currency that would see it appreciate back up to around 1.5/$1, a level not seen since mid-2016. They argued that the currency was undervalued and that as oil prices continue to rise, even slightly, and the economy improves, the manat will strengthen.
Other analysts are more cautious and have said that a multi- million dollar one-off transfer from Azerbaijan’s state oil fund to the government has boosted the value of the manat temporarily and that the decline will continue in the longer term.
ENDS
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(News report from Issue No. 316, published on Feb. 10 2017)