Azerbaijan’s currency reserves expected to grow by year end
The Central Bank of Azerbaijan (CBA) expects significant growth in currency reserves by the end of 2018, Elman Rustamov, chairman of the Central Bank of Azerbaijan, said at a press conference in Baku April 9.
"The growth in reserves this year will depend on oil prices and their volatility," he said.
"In January-March 2018, Azerbaijan's currency reserves increased by $2.2 billion and amounted to $44.2 billion," Rustamov said. "The bonus payments worth $450 million from shareholders of the Azeri-Chirag-Gunashli block of fields positively affected the growth in foreign exchange reserves."
"While maintaining current conditions and taking into account the growth for the first quarter of 2018, it is possible to expect that by the end of the year the country's currency reserves will increase by $8 billion," he said.
"Thus, we expect a great increase in foreign exchange reserves at the end of the year," Rustamov said. "Moreover, we spend money sparingly and greatly reduce transfers from SOFAZ to the state budget. There is also a decrease in import operations."
Azerbaijani Central Bank expecting high-level surplus of balance of payments
The Central Bank of Azerbaijan (CBA) expects a high level of surplus of the country's balance of payments in 2018, CBA Chairman Elman Rustamov said at a press conference in Baku on April 9.
Rustamov noted that positive results achieved in 2017 also had an impact on the first quarter of 2018.
"By the end of the first quarter 2018, our trade turnover increased by 31 percent, and the growth of non-oil exports amounted to 37 percent. All this shows that the process of diversification of the Azerbaijani economy is proceeding successfully. We predict that the balance of payments will continue to grow," Rustamov said.
The current account surplus of Azerbaijan's balance of payments in 2017 amounted to $1.7 billion. Azerbaijan completed 2016 with a current account deficit of the balance of payments at $1.36 billion.
The current account deficit decreased by 13.7 times compared to 2016 and amounted to $201.4 million in 2017.
The analysis of the balance of payments in various sectors has shown that, as in previous years, foreign economic operations in the oil and gas sector had a positive balance, while those in the non-oil sector had a negative balance in 2017.
Inflation rate in Azerbaijan drops to 4%
Average annual inflation rate in Azerbaijan was 4 percent in the first quarter this year, Elman Rustamov, chairman of the Central Bank of Azerbaijan, said at a press conference in Baku April 9.
"Regarding food products, the average annual inflation rate at the end of March was 4.5 percent, non-food products - 4.3 percent, services - 2.9 percent," Rustamov said.
This is while Azerbaijan's Economy Ministry forecasts average annual inflation rate in the country at 6.1 percent and the Central Bank of Azerbaijan at 6-8 percent for 2018.
Central Bank of Azerbaijan decreases discount rate (PHOTO)
The Central Bank of Azerbaijan has reduced the discount rate from 13 to 11 percent, Head of the CBA Elman Rustamov said at a press conference on April 9.
The CBA Board also decided to lower the upper limit of the interest corridor from 16 to 14 percent. The lower limit of the interest corridor was kept at 8 percent.
Rustamov said the decision to reduce the parameters of the percentage corridor was made given the entry of average annual inflation into a single-digit trajectory, forecasts on further lowering inflation and improving external balance.
This is the second reduction of the discount rate since early 2018. In February, the CBA reduced the discount rate from 15 to 13 percent.
Next time, the parameters of the percentage corridor will be discussed in June 2018.
Azerbaijan's Finance Ministry says "too early" to revise 2018 budget forecasts
The Azerbaijani Finance Ministry does not exclude possibility of revising the country's budget forecasts for 2018, Finance Minister Samir Sharifov told reporters on April 11.
However, according to Sharifov, it is too early to speak about the budget revision.
"The budget legislation provides opportunities to review the forecasts of the state budget. But it is too early to say anything certain," the minister said.
Earlier, Chairman of the Parliamentary Committee on economic policy, industry and entrepreneurship Ziyad Samedzade said that the 2018 state budget of Azerbaijan may be revised.
He said that this may happen after summarizing the first quarter of 2018.
Revenue part of the state budget for 2018 is forecast to total 20.127 billion Azerbaijani manats (including centralized revenues in the amount of 19.473 billion manats, local revenues in the amount of 653.353 million manats), while expenditures are expected to amount to 21.047 billion manats (including centralized expenditures in the amount of 20.323 billion manats, local expenditures in the amount of 723.925 million manats).
Interest for North-South project growing (Exclusive)
Interest of cargo shippers in the International North-South Transport Corridor project is growing, Eduard Alyrzaev, first deputy CEO of Russian Railways Logistics (RRL), told Trend April 6.
"There is interest on the part of forwarding companies, cargo owners, major Russian exporters," he noted. "For example, authorities of the Stavropol province, as well as the major Russian steel companies are interested in the project. As for foreign countries, we are in contact with Finland, which exports a fairly large amount of paper to India."
Alyrzaev went on to add that the operators and countries participating in the transport corridor project have become more active. At the same time, it is necessary to further develop the marketing part of the project, he said.
"Together with ADY Express and ADY Container, our Azerbaijani partners, we are actively promoting and advertising the project in Azerbaijan, Russia, Iran, India and even European countries," he noted. "The biggest cooperation in this direction is between Russia and Azerbaijan. There are some results; however, a lot of work is needed to be done."
The North-South transport corridor is designed to connect Northern Europe with India and Southeast Asia. The route will also connect the railways of Iran, Azerbaijan and Russia.
At an initial stage, six million tons of cargo are planned to be transported through the corridor per year and 15-20 million tons of cargo in future.