BAKU, Azerbaijan, July 28
By Zeyni Jafarov - Trend:
Maintaining the stability of the Azerbaijani manat and low inflation, on one hand, do not allow turning the growing nominal incomes of the population into an inflationary ‘bait’, and on the other, create preconditions for economic growth, Executive Director of the Center for Analysis of Economic Reforms and Communication of Azerbaijan, Doctor of Economics, Professor Vusal Gasimli told Trend.
According to Gasimli, despite the volatility of the exchange rate of all currencies in the region, including the Turkish lira, the Russian ruble, the Iranian rial, and the Georgian lari, the rate of the Azerbaijani manat remains stable.
“The stability of our national currency is based on such fundamental foundations as a surplus of the consolidated budget and balance of payments, as well as a six-fold excess of strategic foreign exchange reserves over external debt,” Gasimli said.
“Despite the fact that the consolidated budget for 2021 is projected with a deficit of 7.33 billion manat ($4.31 billion), a surplus of 2.57 billion manat ($1.51 billion) was actually formed in the first six months of this year. The total balance of payments in the first quarter reached $326 million,” he said.
“Although the pressure of import inflation arose with the rise in world prices, price stability in Azerbaijan is maintained through the use of the exchange rate, money supply, and interest rates,” Gasimli said.
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