Central Bank of Azerbaijan announces slow post-COVID economic recovery
BAKU, Azerbaijan, Sept. 18
By Zeyni Jafarov – Trend:
Although there is a certain improvement in global economic activity in many countries due to the partial mitigation of the quarantine regime, the process of economic recovery is very slow amid the expectations of the second wave of the epidemic, the Central Bank of Azerbaijan (CBA), Trend reports.
"The fluctuations were again observed in the world financial markets, as well as in the foreign exchange markets of the countries - trading partners in early September. The volatility in the world market in connection with commodity prices has also increased," said the bank's message.
The CBA said while the average price of Brent crude oil averaged $45 in August, it dropped up to $42.1 in September.
"The quarantine regime in many countries is hampering the sustainable recovery in oil demand," the bank said. "However, despite low oil prices, since the beginning of the year, Azerbaijan's foreign trade balance remains in surplus, which creates conditions for the growth of strategic foreign exchange reserves."
Currently, the strategic foreign exchange reserves of Azerbaijan reach $51.4 billion, which is 0.6 percent more than at the beginning of 2020.
The CBA's foreign exchange reserves have grown by 3.7 percent since the beginning of the year.