BAKU, Azerbaijan, Apr.4
By Zeyni Jafarov - Trend:
The Central Bank of Azerbaijan (CBA) released statistics as of late February 2021 this week, Trend reports.
According to the CBA, the Money Supply Rate (М2) in Azerbaijan made up 19.59 billion manat ($11.52 billion) in the reporting period, which is 7 percent more compared to late Feb.2020.
On an annual basis, the amount of Cash Money Supply (M0) increased by 9.2 percent up to 10.46 billion manat ($6.15 billion), Broad Money Supply (M3) dropped by 0.1 percent to 28.58 billion manat ($16.81 billion), and Transaction money (M1) grew by 10.3 percent, up to 16.99 billion manat ($9.94 billion).
The foreign exchange reserves of the Central Bank of Azerbaijan (CBA) amounted to $6.35 billion as of late March 2021, thus decreasing by 0.6 percent, from $6.39 billion to $6.35 billion year on year.
Meanwhile, the monetary base in Azerbaijan reached 13.3 billion manat ($7.82 billion), up by 3.25 billion manat ($1.91 billion), or 32.3 percent compared to late March 2020.
The volume of credit investments in Azerbaijan amounted to 14.2 billion manat ($8.35 billion) in the first 2 months of 2021. The deposits of the population as of late 2021 made up 8.38 billion manat ($4.93 billion). Meanwhile, the total profit in the Azerbaijani banking sector amounted to 73.1 million manat ($43 million).
Besides, this week the World Bank (WB) issued Economic Review of Europe and Central Asia, predicting Azerbaijan's GDP growth at 2.8 percent in 2021, 3.9 percent in 2022, and 3.4 percent in 2023.
According to the WB forecasts, inflation in Azerbaijan in 2021 will be 3.9 percent, despite the fact that in 2020 the forecast was 2.7 percent. In 2022, the inflation rate in Azerbaijan will decrease to 3.2 percent, and in 2023 - to 3 percent.
In the outgoing week, Chairman of the Central Bank of Azerbaijan (CBA) Elman Rustamov met with World Bank (WB) Regional Director for South Caucasus Sebastian Molineus who said that the WB is ready to render all the necessary support to Azerbaijan in development of this strategy and implementation of reforms.
Meanwhile, Moody’s international rating agency upgraded the outlook of Azerbaijan’s banking system from ‘negative’ to ‘stable’. This was achieved by improving macroeconomic conditions and reducing the risk of deteriorating asset quality. At the same time, ‘stable’ outlook reflects the improvement in economic performance in annual terms.
The Government of Azerbaijan and the World Economic Forum (WEF) signed an agreement on establishing Azerbaijani branch of the WEF’s Fourth Industrial Revolution centers' network last week.
The document was signed by the WEF’s President Borge Brende and the Minister of Economy Mikayil Jabbarov. The activities of the Azerbaijani branch, which began work on April 1, 2021, are based on the Memorandum of Understanding signed on January 21, 2020, within the WEF in Davos (Switzerland) by the President of Azerbaijan Ilham Aliyev and the WEF president.
Such a center is the first to exist in the CIS. Its functions will be controlled by Center for Analysis and Coordination of the Fourth Industrial Revolution public entity under the Ministry of Economy.
This week, economic relations were discussed between Azerbaijan and Turkey. The Minister of Economy of Azerbaijan Mikayil Jabbarov announced plans to increase trade with Turkey in 2021.
He also noted that Azerbaijan is interested in cooperation with Turkish partners in all spheres, including in the implementation of the ‘Great Return’ strategy (to the territories liberated from the Armenian occupation during the 44-day war from late Sept. through early Nov.2020).
Moreover, the Memorandum of Understanding on Digital Trade was signed between the two countries, which will contribute to bringing trade relations to a new level, stimulating the trade of goods and services through the use of new technologies, as well as to the development of digitalization in the countries.
Also this week a rise in the price of manat against the currencies of the main partner countries of Azerbaijan was recorded.