American markets ended Friday’s session on limited sales, index futures S&P premarket retreats. Oil prices on Monday morning, falling sharply. A barrel of North sea Brent oil lost 2% and now costs $49,86. The fact that the psychologically important threshold of $50 has been overcome so quickly, indicates the instability of the moods of your customers. To confuse anything. In the current situation, the oil looks overvalued and needs correction for $3-4.
Euro/dollar on Monday continued to slide down, thus preserving the strength of Friday’s momentum. The current price in the main currency pair is at the level of 1,1282. To return to the August peaks there is not noticeable.
In Azerbaijan, local banks have restricted the sale of foreign currency, and some credit institutions have completely ceased to exchange manats for dollars and euros. In the best case, operating the cash register Azerbaijani Bank to buy $100-500. Such restrictions banks have imposed on their own, fearing a shortage of foreign exchange liquidity in the face of excess demand from the population. The country’s monetary authorities can not influence the actions of banks, as they do not break and have the right to restrict the sale of foreign currency.
The demand for foreign currency increased significantly after the devaluation of the manat in 2015, the population does not believe in the stability and tries to protect yourself from a new collapse of the national currency.
In early June, AZN again began to weaken against the dollar and the Euro. Back in early June for $ 1 was offered 1.48 manat rate rose to 1.63. Thus, for 2.5 months, the manat depreciated against the dollar by 10%. The pressure of population on the banks only worsens the situation. To stabilize the situation will allow designitalia restrictions on the sale of foreign currency. As soon as the manat will begin to strengthen, the panic among the population will come to naught.