AZERI GOVвЂ™T TAKES EXTREME MEASURES TO LIFT CURRENCY CRISIS
The Azerbaijani government held an irregular meeting in early hours of Monday to lift the crisis which broke out on 17 September as a result of irregular fall in the rates of US dollar in regard to Azerbaijani manat. Heads of banks were also in attendance.
The Cabinet of Ministers told Trend that as a result of the gathering it was resolved to approve 16bn manats to bank for the supply to the exchange places, while some banks were either deprived of their licenses, or issues restrictions.
"The crisis [fall of the cash currency rate of US dollar to 3800 manats in case of official
exchange rate of 4577 manats) was a result of negligence by the bank which did not acquire the national currency from the National Bank of Azerbaijan (NBA) on Friday to ensure the activities of the exchange places.
The banks which received the national currency did not distribute it among the exchange places, motivating that the exchange places should independently purchase and sell currency.
The steps taken in this direction enabled to increase the rate of the cash dollar to 4540 manats, which corresponds the figure fixed on Friday," the Cabinet f Ministers said.
The Azerbaijani government and the NBA will take under control the attempts of speculative cut in exchange rate of US dollar in regard to manat. On Monday (19 September) the official rates were announced as 4579 per dollar.
The crisis was resulted amid deficit in cash manats. The NBA expects to receive a new batch of 250bn manats in cash only 15 October 2005.