MANAT CONTINUES ITS FALL, THREATENING BANKS
Silk Road Reporters
Feb 25 2015
Published by Joe PeersonFebruary 25, 2015
Banks in Azerbaijan are facing risks to their asset quality after
the country devalued its currency by around 30%, Moody’s Investors
Service has warned, according to Bloomberg.
On February 21, the country’s central bank placed the manat at 1.05
against the dollar, compared with 0.78 earlier.
The step was taken to strengthen international competitiveness, amid
pressure on the the country from falling oil prices, the central bank
said in its statement.
Azerbaijan’s economy has slowed with failing oil prices from its
peak of 2014, while Russia’s crashing ruble has diminished the
competitiveness of local industry and has pushed other regional nations
such as Armenia and Kazakhstan to move to protect their currencies.
Azerbaijan’s decision has been credit negative for its banks, including
the unit of VTB Bank OJSC and the International Bank of Azerbaijan
OJSC, Moody’s said in its statement.
From: Emil Lazarian | Ararat NewsPress
Disclaimer: This article was contributed and translated into English by Emil Lazarian. While we strive for quality, the views and accuracy of the content remain the responsibility of the contributor. Please verify all facts independently before reposting or citing.
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