CBAR reserves up 1.3% m/m to US$ 4.1bn
Central Bank of Azerbaijan Republic bought US$ 37.3mn in two auctions in April 2016. The market interventions, along with revaluation of assets, led to m/m increases in reserves for the second month in a row. In April 2016, reserves were up US$ 54.8mn m/m (+1.3% m/m) to US$ 4.1bn, but down 50.9% y/y and down 72.9% compared to the record high of July 2014.
Azerbaijan’s rating confirmed at Ba1
Following the late February 2016 downgrade, Moody’s confirmed Azerbaijan’s rating at Ba1 and assigned a negative outlook on April 29, 2016. According to Moody’s, Azerbaijan’s sizable foreign exchange reserves provide sufficient buffer to absorb shocks to the economy. Nevertheless, the rating agency states that outlook remains weak, as it expects the economy to contract 3.3% in 2016.
