Galt&Taggart Publishes Report on Main Developments that Took Place in Azerbaijani Economy Last Week.
Slight improvements in Azerbaijan’s Doing Business indicators
According to the latest Doing Business 2017 report, Azerbaijan has moved from a revised 61st position to 65th position. While retreating in the global ranking, its distance to frontier (DTF) score has slightly improved from 67.84% to 67.99%. Improvements were recorded in “Trading Across Borders” (from 71.48% to 72.28%), “Getting Electricity” (from 64.10% to 64.83%), and “Paying
Taxes” (from 83.08% to 83.52%). Azerbaijan’s DTF score retreated in “Dealing with Construction Permits” from 64.13% to 63.63%.
Oil prices and exchange rate
Oil price: Brent oil price was down 2.7% w/w to US$ 50.4/bbl (up 2.7% y/y), while WTI oil price decreased 2.5% w/w to US$ 49.3/bbl (up 7.3% y/y). In AZN terms, Brent oil price was down 0.1% w/w to AZN 82.7 (up 64.7% y/y).
Exchange rate: On October 28, 2016, Central Bank’s AZN/US$ rate was 1.6381 (+1.8% w/w) and AZN/EUR rate was 1.7863 (+1.8% w/w). At Bloomberg AZN/US$ was trading at 1.6778 (+2.7% w/w) while AZN/EUR was trading at 1.8126 (+2.8% w/w). Monetary policy rate: Monetary policy rate was unchanged at 15.0%.
Corporate Eurobonds: State Oil Company of Azerbaijan (SOCAR) Eurobond (SOIAZ 03/30) closed at 6.0% yield, trading at 108.5 (-1.1% w/w). International Bank of Azerbaijan Eurobonds (IBAZAZ 06/19) were trading at 99.4 (+0.3% w/w), yielding 5.9%. Azerbaijan Sovereign Eurobonds (AZERBJ 03/24) closed at 103.5 (-0.9% w/w) at 4.2% yield to maturity