Another member of the Commonwealth of Independent States (CIS) devalue its currency. Azerbaijan devalued its currency with 35%. The official rate of the Azerbaijani Manat against the USD set by the Central Bank on 21st February 2015, was 1.05 manats for 1 USD, compared to 0.7862 manats for 1 USD a day earlier.
“This decision was taken in order to promote diversification of the economy of Azerbaijan, to strengthen the international competitiveness and export potential, to ensure the sustainability of the balance of payments”, said in a statement the central bank. The course Azerbaijani Manat against the single EUR also fell. The official exchange rate for 21st February 2015 was 1.1950 per EUR at 0.8934 per EUR a day earlier.
The devaluation of Azerbaijani currency was expected by the market, as representatives of the central bank has repeatedly stated that the plan more flexible exchange rate for its currency. However, the governor Elman Rustamov said that any weakening of Azerbaijani Manat will be soft. In his words, there is no reason for a prolonged weakening of the currency. The institution simply seek to follow global trends in devaluation to boost exports.
On 16th February 2015 the Azerbaijan Central Bank moved to using a basket of currencies in determining the amount of manat. The USD share in it is 70%, while the remaining 30% goes towards the EUR.