On January 13, the Central Bank of Azerbaijan has annulled the license of foreign exchange offices, demanding the cessation of their activities. The financial institutions consider “exchangers” as a cause of the national currency devaluation. Such a behavior of the authorities reveals the deep economic problems in the country’s economy, — says Aza Mihranyan, senior researcher at the Institute of Europe, the Russian Academy of Sciences.
“Exchangers provide the possibility of more simplified exchange of foreign currency. In this regard, the partial loss of control over monetary amounts is possible. However, the tougher regulatory system, the greater is the leaving in the shadows. And accordingly, the possibility of control is completely lost. The restrictive methods of exposure indicate serious economic problems,” told RUSARMINFO Aza Mihranyan. The government is trying to contain the scale of macroeconomic inflation rates and the depreciation of the national currency. While only administrative methods to resolve this issue will not be sufficient, — notes the expert. “In countries with raw material orientation, which is Azerbaijan, we can not expect the alignment of the national currency. The republic has seriously reduced the possibility of obtaining foreign currency earnings. Therefore, the dollar will rise, and the rate of national currency will fall,” concluded Aza Mihranyan.
According to Leonid Vardomsky, head of the Center for Post-Soviet Studies at the Institute of Economics, the Russian Academy of Sciences, the mass closure of exchange offices in Azerbaijan is connected to the desire of the country’s leadership to prevent massive buying of foreign currency for its citizens, who fear losing their savings in manats. Note: In the list of depreciated currencies of the former Soviet republics, the Azerbaijani manat, having fallen in price by 97% in 2015, is ranked in the first place.