Last week review (Feb. 16-20)
Azerbaijani Central Bank to change exchange rate policy
The Central Bank of Azerbaijan (CBA) from Feb.16 will switch from determining the bi-currency exchange rate to targeting the currency basket value. That's to say, CBA will abandon the AZN peg to the US dollar. This decision was made based on the decision of the CBA board, a message from the bank said.
"It was decided to pursue the exchange rate policy based on the bi-currency basket mechanism which includes the US dollar and euro," said the message. "This is while CBA will continue participating in the country's currency market within a certain currency corridor."
The new operational frameworks will create conditions for the gradual adaptation of economic entities and ensure the flexibility of the exchange rate policy and macroeconomic efficiency.
Southern Gas Corridor important not just for Azerbaijan, but also for European countries
The US and Azerbaijan work in such traditional areas as security, economy and energy, the US Assistant Secretary of State for European and Eurasian Affairs Victoria Nuland said.
She made the remarks at a press conference in Baku.
Nuland praised the meetings she earlier had in Baku, noting that the US very much values over 20 years of partnership with Azerbaijan.
Touching upon the cooperation in the sphere of energy, Nuland said the Southern Gas Corridor is important not just for Azerbaijan, but also for all the countries in Europe, which are too dependent on a single source of energy.
She said the Southern Gas Corridor is a joint project of the US, Azerbaijan and Europe.
BTK project's implementation to promote region's economic development - FM
The implementation of the Baku-Tbilisi-Kars (BTK) railway project will contribute to the economic development of the region, Azerbaijani Foreign Minister Elmar Mammadyarov said.
The minister made the remarks during a joint press conference with his Georgian counterpart Tamar Beruchashvili in Tbilisi.
During the joint press conference, Mammadyarov said that aside from the traditional energy projects, the two sides also cooperate in the joint implementation of the project for construction of BTK railway.
Israel offers Azerbaijan solutions in cyber security
Israel is ready to share its experience with Azerbaijan in the area of cyber security, the Communications and High Technologies Ministry of Azerbaijan said in a message.
The message read that the cooperation in cyber security was discussed in Baku at a meeting of Azerbaijan's communications and high technologies minister, Ali Abbasov, with the head of the department for cyber technologies and computer software of Israeli government agencies, Iris Zur Bargury, and Israel's ambassador to Azerbaijan, Rafael Harpaz.
Azerbaijan, Korea to jointly produce LED light sources
The State Fund for Development of Information Technologies signed a memorandum of understanding with South Korea's LG Company for the deployment of a joint production of LED light sources (LED - Light-emitting diode), the executive director of the State Fund for Development of Information Technologies under the Azerbaijani Ministry of Communications and High Technologies Elchin Zeynalov said.
He said that it is provided to attract about 10 million manats (AZN) of investment for implementation of the project.
"Currently, negotiations are underway for the establishment of business structure responsible for the project, the issues of share distribution of investments and prospects for future sales of finished products are being discussed," he said.
Dollar exchange rate in Azerbaijan exceeds 1 manat
Starting from February 21, 2015, the official rate of the dollar to the manat (AZN) will be $1 / 1.05 AZN, the Central Bank of Azerbaijan said.
"This decision was made in order to create an additional incentive for the diversion of the national economy, improvement of competitiveness and export potential, as well as provide strategic stability of the balance of payments and international solvency of the country," said the statement.
It is noted that the correction of the manat exchange rate is also aimed to neutralize the effect of a significant depreciation of the exchange rate, which the national currencies of most countries have suffered.
The Central Bank of Azerbaijan will continue to participate in the foreign exchange market within the framework of a specific corridor.