Weekly economic review (June 8-12)

Analysis Materials 16 June 2015 18:11 (UTC +04:00)

Drop in oil prices not to lead to Azerbaijani currency's repeated devaluation

A possible drop in world oil prices below $50 per barrel mark will not lead to a repeated devaluation of Azerbaijan's national currency, said Raja Almarzoqi, the chief of the mission of the International Monetary Fund (IMF) in Azerbaijan.

He made the remarks speaking to reporters in Baku.

As Almarzoqi said, this is due to that the Azerbaijani government has budgeted for the oil price for 2016 at $50 per barrel mark.

He said that currently for the country's government the main thing is to fight corruption and improve the customs procedures and the business environment.

Almarzoqi said it is quite clear that the Azerbaijani government's spending is now reducing, but if the mentioned criteria are met, this will lead to an economic revival, nullifying the probability of the national currency's weakening.

IMF's official also said the budgeted $50 per barrel better reflect the current real situation.

He said given that until 2019 the price of a barrel of oil won't rise above $75 per barrel, the current oil price of $50 very much corresponds to the reality.

Almarzoqi also said due to that this year the oil price was budgeted in Azerbaijan at $90 per barrel the budget is likely not to be executed completely.