On April of last year, I wrote about the then-mounting pressure on Azerbaijani manat (AZN) and concluded that we can expect the currency to be devaluated by the end of the year 2020. However, time has shown that manat managed to preserve its stability. I decided to write this post to analyse why my prediction was inaccurate and to mention couple of relevant points.
Category: Exchange Rate Policy
An Unlikely Hero – How Gold Can Aid Manat?
In my latest post, I delved into the topic of Azerbaijani Manat’s grim-looking short-term future following the surging demand for foreign exchange in March and concluded that there is a substantial risk of devaluation during 2020. In this post, I am going to share a concept on how the government can at least delay this devaluation for the near future and avoid exacerbating the economic situation in the country already troubled by coronavirus epidemic…
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Bad Neighborhood: Can Manat Hold On?
Political tensions in Turkey and sanctions against the Russian Federation resulted in sharp depreciation of Turkish Lira (TRY) and modest loss of value by Russian Ruble (RUB), creating an overall expectation of devaluation in Azerbaijan. With this post, I would like to briefly look at different factors and argue why and why not a devaluation can be expected. At the end, I will give my overall conclusion on whether we should worry about Manat.