BAKU, Azerbaijan, May 16
By Zeyni Jafarov - Trend:
The rise in the price of raw materials amid the recovery of the global economy from the consequences of the COVID-19 pandemic implies not only an increase in inflation around the world and interest rates in the developed markets, but also creates the preconditions for the potential strengthening of currencies in the CIS region and economic growth in most countries of the region, CIS Senior Economist at Renaissance Capital Investment Company Sofya Donets told Trend.
“The prospects for the biggest oil exporters in the CIS region, namely, Russia, Kazakhstan and Azerbaijan, are also encouraging, especially in comparison with the end of 2020,” she added.
"We think that the rise in fuel prices equalizes the effect of the introduction of quotas upon the OPEC + agreement and the Azerbaijani manat has a fixed exchange rate amid this situation,” Donets said. “So we do not see threats to its stability yet."
“Most of the countries in the region will benefit from active increase in raw material prices in 2021,” the economist said.
“The expected increase in raw material prices supports the optimistic forecasts for economic growth for Russia, Kazakhstan and Azerbaijan for this year,” Donets said.
“Azerbaijan, despite the COVID-19 pandemic, maintains a fairly stable credit position and this occurred mainly due to the huge reserves accumulated in recent years, including funds in the sovereign fund, gold and foreign exchange reserves of the Central Bank,” she said.
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