{"id":15487,"date":"2015-12-21T11:21:46","date_gmt":"2015-12-21T16:21:46","guid":{"rendered":"http:\/\/olduvai.ca\/?p=15487"},"modified":"2015-12-21T11:22:49","modified_gmt":"2015-12-21T16:22:49","slug":"15487","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=15487","title":{"rendered":"Azerbaijan Currency Crashes 50% As Crude Contagion Spreads"},"content":{"rendered":"

Azerbaijan Currency Crashes 50% As Crude Contagion Spreads<\/a><\/h3>\n
OPEC blowback continues to ripple around the world.\u00a0<\/strong>With Russia’s Ruble pushing back towards record lows against the USD, and Kazakhstan’s Tenge having tumbled to record lows, the writing was on the wall for Azerbaijan.\u00a0As Bloomberg reports,<\/em><\/a>\u00a0the third-biggest oil producer in the former Soviet Union\u00a0moved to a free float on Monday and the manat crashed almost 50% instantly to its weakest on record<\/strong>\u00a0with the second devaluation this year.<\/div>\n
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First the Russian Ruble…<\/p>\n

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Then Kazakhstan’s Tenge…<\/p>\n

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While Azerbaijan\u2019s former Soviet allies Russia and Kazakhstan have moved to floating currency regimes in the past year,the Azeri central bank has questioned whether the country was prepared for a similar shift.<\/strong>\u00a0Governor Elman Rustamov said there was no need for another devaluation of the manat, according to a televised interview broadcast on Sept. 25.<\/strong><\/u><\/em><\/div>\n

And now Azerbaijan’s Manat crashes 50%…<\/p>\n

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As Bloomberg reports,\u00a0<\/em><\/a>\u201cIt looks like Azerbaijan\u2019s authorities are following Kazakhstan\u2019s devaluation path,\u201d said Oleg Kouzmin, a former Russian central bank adviser who works as an economist at Renaissance Capital in Moscow.\u00a0\u201cAfter devaluing the currency once, some time ago, they concluded that the first move was not enough to tackle all the challenges of a weaker oil price environment.\u201d<\/strong><\/p>\n

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Azerbaijan relies on hydrocarbons for more than 90 percent of its exports a<\/strong>nd the manat has lost almost half its value against the dollar this year, the worst performance of currencies globally.<\/div>\n

The Azeri central bank\u2019s reserves were at $6.2 billion at the end of November, down from more than $15 billion a year earlier.<\/strong><\/p>\n

The Russian ruble\u2019s collapse and a 70 percent plunge in the crude price since June last year have ushered in a new era of volatility for Azerbaijan, which is also beset by challenges ranging from declining oil output to a festering conflict with neighboring Armenia.<\/p><\/blockquote>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Azerbaijan Currency Crashes 50% As Crude Contagion Spreads OPEC blowback continues to ripple around the world.\u00a0With Russia’s Ruble pushing back towards record lows against the USD, and Kazakhstan’s Tenge having tumbled to record lows, the writing was on the wall for Azerbaijan.\u00a0As Bloomberg reports,\u00a0the third-biggest oil producer in the former Soviet Union\u00a0moved to a free […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1076,184,951,1985,8470,600,11144,2773,4318],"class_list":["post-15487","post","type-post","status-publish","format-standard","hentry","category-economics","tag-azerbaijan","tag-crude-oil","tag-currency","tag-kazakhstan","tag-nomura","tag-opec","tag-renaissance","tag-volatility","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15487","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15487"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15487\/revisions"}],"predecessor-version":[{"id":15489,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/15487\/revisions\/15489"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15487"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}