Azerbaijan defines reasonable oil price for economy (UPDATE)

Economy Materials 19 January 2016 16:41 (UTC +04:00)
Azerbaijan will build the country’s economy based on the oil price of $25-30 per barrel

Details added (first version posted on 14:57)

Baku, Azerbaijan, Jan. 19

By Azad Hasanli - Trend:

Azerbaijan will build the country's economy based on the oil price of $25-30 per barrel, the chairman of the Central Bank of Azerbaijan Elman Rustamov said Jan.19.

He made the remarks during the meeting of the parliamentary committee on economic policy.

"Now it is our main objective in terms of stabilization of the manat rate and preservation of macroeconomic stability," he said.

The head of the Central Bank of Azerbaijan called the devaluation of the manat "a hard fall" and said that it was not comfortable for population, financial and banking sector, business or government.

At the same time, Rustamov added that Azerbaijan's international reserves reach $40 billion, and not even all exporting countries have such figures.

"These funds are enough for maneuvers, diversification of economy and transition to a more sustainable foundation," he said. "We have plenty of resources."

"Yesterday, on Jan.18, the head of state [during the meeting to address economic and social issues] gave additional instructions how to use them [resources] efficiently, including the funds of State Oil Fund of Azerbaijan (SOFAZ) in order to keep the exchange rate of manat on the regulated level," said Rustamov.

"I wouldn't call it stabilization of the rate, because the rate of the manat is heavily dependent on external factors," he said, adding that since the beginning of the year, the change of rate of the Russian ruble and the Kazakh tenge was greater than the change in the exchange rate of the manat.