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Azerbaijan resorts to artificial euro depreciation to stem sharp dollar rise

19 November 2008 11:31 (UTC +04:00)

The dollar takes a 81.2% share, leaving 17.8% to the 15-nation currency.
The National Bank of Azerbaijan said the average exchange rate during January-September was AZN 0.8262/USD 1, down 3.9% on a year ago.
Euro was trading at AZN 1.2580, up 5.4% on a year ago.
The central bank said that there is a downtrend in both euro and dollar exchange rates:

After August when the dollar started to strengthen against the euro, the dollar has been climbing against Azerbaijanâ€™s national currency (manat or AZN).
The dollarâ€™s rising against the euro on the world markets manifested itself in euro depreciation in Azerbaijan, showing that the dollar takes more prevailing role in the national economy.
So, we can conclude that the dollar appreciation in Azerbaijan to the level reached in foreign markets would have been more serious headache than the euro depreciation because the latter has not as significant role as the former.
The cash exchange rates are connected to the official rates and dollar-euro move was adjusted to the artificial depreciation of the euro against the manat by the National Bank of Azerbaijan.