Weekly review of events in financial market of Azerbaijan

BAKU, Azerbaijan, Jan. 9

By Zeyni Jafarov - Trend:

An important event this week in Azerbaijan was the rise in prices for motor gasoline RON-92 (from 0.9 manat or 52 cents to 1 manat or 58 cents) and diesel fuel (from 0.6 manat or 35 cents to 0.8 manat or 47 cents), MP of Azerbaijan, Doctor of Economic Sciences, Professor Rufat Guliyev told Trend.

This decision was made within the adaptation to international standards and the solution of environmental problems.

According to the MP, Azerbaijan is developing in this direction and is being drawn into the world economic system. "For this reason, it is necessary to monitor both the purity of the fuel and the economic consequences of its use. Further, all this will lead to new investments and increased requirements for the environmental acceptability of all types of fuels in accordance with new international standards," he added the MP.

Along with this, this week the World Bank (WB) announced forecasts for economic growth in Azerbaijan. Thus, according to the WB report, in 2021 Azerbaijan's GDP growth is projected at 1.9 percent, and in 2022 Azerbaijan's economic growth will rapidly accelerate and reach 4.5 percent. Activity in Azerbaijan is also expected to expand during 2021 as oil prices stabilize and the economy will benefit from investment and reconstruction costs in Azerbaijani territories liberated from Armenian occupation.

As of early January 2021, the foreign exchange reserves of the Central Bank of Azerbaijan (CBA) amounted to $6.37 billion. According to the bank, since the beginning of 2020, the Central Bank's foreign exchange reserves have grown by 1.8 percent (from $6.25 to $6.37 billion). The monetary base in Azerbaijan at the beginning of January 2021 amounted to 13.56 billion manat ($7.97 billion), which in annual circulation demonstrates an increase of 1.41 billion manat ($829.4 million) or 11.6 percent.

At the outgoing week, at a video-format meeting on the results of 2020, chaired by the head of state, Azerbaijani Minister of Economy Mikayil Jabbarov said that in order to ensure an integrated approach to the restoration and development of the territories liberated from the occupation, it is planned to hold events in four stages. The initial stage includes the solution of issues of management, security, and infrastructure, and the subsequent stages - the functioning of social services, restructuring, and development of the economy.

Also this week it became known that another insurance company is being liquidated in Azerbaijan. The management of the AXA MBASK insurance company decided to terminate the activity and liquidate the company. The company's shares were wholly owned by the Spanish subsidiary AXA Seguros Generales, S.A., De Seguros Y Reaseguros of the French AXA group.

The outgoing week was also remembered by the rise in prices for Azerbaijani oil and the stability of the manat exchange rate against the dollar and ruble.