Another devaluation of the manat possible in Azerbaijan

The Asian Development Bank (ADB) has published a forecast, according to which the Azerbaijani authorities can wait for a second devaluation of the national currency.

The ADB experts note that the factors which affect the stability of the manat fell sharply this year. Thus, oil prices remain below $50 a barrel and the official foreign exchange reserves of the republic in January-August fell by more than 30%. The ADB believes that if these trends continue, it will provoke a new devaluation.

But the analysts foresee another problem after a possible devaluation, since Azerbaijan's banking sector is experiencing a wave of dollarization. "After the devaluation of the manat the volume of deposits in dollars almost doubled," Interfax reports.