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Moody’s Sees Capital Controls Back on Azeri Agenda as Woes Mount

Moody’s Investors Service said Azerbaijan may be forced to reconsider some form of capital controls as the former Soviet Union’s biggest currency crisis shows no sign of letting up.

Tighter monetary policy has failed to “effectively” respond to a deficit of dollars in the banking system, with demand at foreign-currency auctions conducted by the state oil fund recently exceeding the amount offered by 14 times, Moody’s said in a report. That’s caused shortages severe enough that many lenders stopped selling dollars outright in recent days. A single bank visited in central Baku on Monday offered foreign currencies, selling no more than $200 per person as a queue grew to more than 250 people.