75% of Azerbaijan`s Foreign Assets in Dollars

Stats of the assets and obligations of states in dollars demonstrate their need for the US currency, the economist Fariz Huseynli says.

In his profile on Facebook, the expert noted that the important thing is not the statements of leaders of some countries, but statistics.

Citing statistics of the Bank for International Settlements, the expert noted that 75% of Azerbaijan’s foreign assets and 70% of its liabilities are in dollars. Russian foreign assets in US dollars represent 82%, and its liabilities in USD represent 81%. For Turkey the figures on assets and liabilities in USD are equal to 46% and 58%, respectively.

“The figures show that the demand and the need for dollars are high. Naturally, every country tries to reduce the need for the US currency, but this requires a stable economic development and a strong financial market,” Huseynli says.

The expert notes that on the one hand the presence of foreign currency assets is positive, as in the case of a sharp rise in the demand for foreign currency in the country a part of the assets can be sold to meet the demand. Therefore, every country takes precautions, trying to accumulate dollar reserves.

On the other hand, according to the economist, the country should investigate the income from investments in foreign currency. ----71D