Azerbaijan’s sovereign rating affirmed at BB+
S&P affirmed Azerbaijan’s BB+ rating, while keeping the outlook negative. The agency views Azerbaijan’s fiscal position as strong, helped by substantial reserves at the Oil Fund. Azerbaijan’s institutional settings and risk to the banking system are the main weaknesses of the economy going forward.
CBAR reserves increased at the highest pace in over three years
Central Bank reserves increased by US$ 352.8mn m/m (+8.9% m/m) in January 2017 to US$ 4.3bn, the highest level since February 2016. A bigger increase was last recorded in December 2013.
SOFAZ sold US$ 285.0mn in FX auctions in January 2017
At FX auctions organized by CBAR in January 2017, State Oil Fund of Azerbaijan Republic sold US$ 285.0mn, 15.9% more than in the previous month (-52.0% y/y).
Oil price and exports up in January 2017
According to SOCAR, BTC FOB Ceyhan crude oil price was up 0.4% m/m (+70.6% y/y) to US$ 55.1 per barrel in January 2017. Crude oil exports were up 7.3% m/m (-6.3% y/y) to 1.7mn tons in December 2017.
Based on SOCAR data, our calculations indicate that receipts from crude oil exports were up 7.8% m/m (+59.6% y/y) to US$ 0.7bn in January 2017.
