He said that the Central Bank of Azerbaijan devalued manat because of lower oil prices.
He recalled that in 2008, when oil prices fell on world markets, the Central Bank has ensured stability of the manat.
“We spent more than $1 billion to maintain the rate of manat,” he said. “Then oil prices stabilized soon, and we were able to return the money spent.”
The fall of oil prices in 2014 by 2 times is a new phenomenon, according to Rustamov.
“The current decline in prices is the same as in the 80s, according to experts and international investment organizations,” he said. “They believe that the decline in oil prices will further continue as well.”
On February 21, Central Bank of Azerbaijan established rate of the manat to the US dollar at 1.05 manat per dollar (compared to 0.7844 manat earlier), which corresponds to the cheapening of rate by 33.9 percent. At the same time, the official rate of the euro to the manat rose by 33.8 percent - up to 1,195 manat.
As of March 17, the official rate of the manat to the US dollar and the euro is set by the Central Bank of Azerbaijan at the level of 1.0488 manat and 1.1081 manat, respectively.
Following the discussions, the parliament adopted the government`s report for 2014.
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