NBA agree to convert currency revenues to public budget
The National Bank of Azerbaijan (NBA) agreed to convert the currency revenues to the public budget, the government told Trend. Under the contract signed with oil companies and subcontractors involved in the oil sphere, they carry out transference to the public budget in foreign currency. NBA has suspended converting of the revenues into manats for 8 months. The bank explained it with anti-inflation measures, as excessive manat mass in circulation leads to inflation.
As a result of the anti-inflation measures, around $113m was accumulated in the public budget, including, 15m pound sterling paid out by subcontractors. Though the oil sale is carried out only in U.S. currency, the oil contracts envisage payment in the currency of the country of the subcontractors or contractors.
Nevertheless NBA converted all $113m sum after the meeting of the employees of the Finance Ministry and the bank held on 20 December. The losses due to rate difference were added to the expenses of the bank.
Delay in converting evolves problems for the Treasury in carrying out budgetary accounting. Besides, the Treasury loses in relation to change of dollar rate.