BAKU, Azerbaijan, May 1
By Eldar Janashvili - Trend:
Uncertainty regarding the prospects for changing the balance of inflation risks remains high, Trend reports citing the Central Bank of Azerbaijan (CBA) on May 1.
“The global economic activity and the situation on the world oil market mainly affect Azerbaijan's export revenues and related expectations. On the other hand, the balance of payments is balanced by social exclusion measures applied globally and restricting the import of goods and services,” said the report.
Within the new realities, foreign exchange reserves, the country's flexible macroeconomic maneuverability and the current package of economic assistance will help reduce the negative consequences of the pandemic.
The reduction in macroeconomic risks will depend on the recovery of the global economy after a softening of the quarantine regime and acceptable stabilization of oil prices on world markets.
The expected processes in the external and internal environment on the support of economic activity and employment while making further decisions on the parameters of the interest rate corridor for the remainder of the year require maintaining the optimal balance between macroeconomic stability and the stability of the exchange rate, which is its main anchor.
To this end, the CBA will constantly monitor current processes in the external environment and domestic financial markets, as well as the state of achievement of the inflation target.
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