Azerbaijani national currency manat’s transition to a floating exchange rate against the US dollar, price hikes of its products related to almost twice depreciation of currency, massive protests against price hikes in the entire territory of the country after prices’ rising of more than 50% shocked the Azerbaijani political power which was spoiled by the abundance of petrodollars. Massive job cuts are taking place in the country, unemployment is rising, a large number of enterprises and banks are closed. Hourglass was put in the action and countdown has begun against the Azerbaijani political power.

Deflation of oil prices put Azerbaijan's economy on the verge of collapse

Azerbaijan lost about 10 million dollars after oil price reduced since the beginning of last year. Azerbaijan's state oil company (SOCAR) had to cut 21 thousand work places. Number of 5000 employees from the banking sector was reduced. Azerbaijan Central Bank's foreign exchange reserves in 2015 declined by about 60 %.  State Oil Fund of Azerbaijan in 2015 amounted to 6 billion 956 million dollars from the profitable sale of oil, while in 2014 it was 15 billion 118 million dollars and 16 billion 261 million dollars in 2013. Azerbaijani Central Bank spent around 10 billion dollars for keeping marginally stable manat’s exchange rate.

Azerbaijan State Oil Company SOCAR’s injections to the state budget reduced by 1.5 billion dollars during 2015.

Azerbaijan cut off several state agencies, including State Committee of standardization, metrology and patents; Land and Mapping Committee.

More depreciation of manat will lead to more price hikes of the goods and Azerbaijan will be in hyperinflation situation.