WB: Azerbaijan needs direct foreign investment to preserve competitiveness
Azerbaijan, Baku, August 5 /Trend, I.Khalilova/
Over the past five years, the Azerbaijani manat has risen in price by about 28 percent.
"Since 2007, the national currency of Azerbaijan has risen in price by about 28 percent, which indicates that in order to preserve its competitiveness, the country must pay special attention to improving the efficiency of production," a source at the Baku office of the World Bank told Trend on Friday, commenting on the effectiveness of exchange rate policy pursued in Azerbaijan.
In particular, according to experts of World Bank, there is a need to introduce new technologies and methods of agricultural production to ensure their competitiveness in world markets.
"In this regard, the country feels the need for foreign direct investments, because exactly they are mostly accompanied by new technologies and methods, as well as business practice," said the source.
A source at the Central Bank of Azerbaijan told Trend that in order to ensure the international competitiveness of the country's economy, the Central Bank is trying to prevent a sharp appreciation of the manat.
"Given the priorities of the Central Bank in 2011 on inflation and financial stability, the Bank will pursue a policy of maintaining stable exchange rate of manat, the CBA said. - To achieve these goals, if necessary, work will be conducted in the currency market of the country to create a balance between supply and demand".
As of the end of 2009, the national currency of Azerbaijan grew by 1.8 percent, in 2010 - 0.6 percent, since the beginning of 2011 - 1.4 percent.