Finance Ministry trying to increase trust in Azerbaijani currency (UPDATE)
Details added (first version posted on 17:39)
Baku, Azerbaijan, Jan. 28
By Azad Hasanli - Trend:
Azerbaijan's Ministry of Finance will start the placement of bonds in national and foreign currencies in February 2016, Samir Sharifov, the country's finance minister, said Jan. 28 at a press conference in Baku.
He said the issuance of bonds is partly related to the current situation in the market.
"It should be noted that in connection with the national currency's devaluation the confidence in manat has fallen," said Sharifov. "Manat sale and US dollar purchase have increased. It has become difficult today to get the manat in the banks, as the banks' assets are mostly in dollars."
To increase the trust in the manat, the government has decided to start issuing bonds, the minister added.
"We are ready to provide bonds to the market at a high rate," said Sharifov.
Earlier the minister noted that the majority of population has foreign currency savings, which are kept not in the banks, but at homes.
"These funds are withdrawn from economic circulation, and that is bad. And what does that lead to? People don't make profit from those funds," he said.
"In order to make those funds work, we are ready to provide their owners with profit. If they shun banks now, they can invest their money in our currency bonds," said the minister.
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