The Effect of Oil Price Fluctuations on the Exchange Rate of the National Currency of Azerbaijan: Assessment of the years 2014-2017

Abstract

In this research paper, the dynamics of the oil prices effect on the manat’s rate during the last four years, 2014-2017, will be analyzed. The research will be based on the question, “How do oil price fluctuations affect the exchange rate of the national currency of Azerbaijan?”. The main reasons behind the depreciation of the manat will be investigated. Measures taken by major players in the field, such as the CBAR and SOFAZ, to address the problem will be examined. The paper will also provide an overview of oil price forecasts, as well as of the rate of the Azerbaijani manat, based on international and domestic sources.