In the opening months of 2024, Azerbaijan finds itself grappling with a notable surge in demand for dollars, a trend underscored by the robust results of currency auctions conducted by the Central Bank of Azerbaijan (CBA). Against a backdrop of economic uncertainty and shifting market dynamics, the sharp uptick in dollar purchases raises pertinent questions about the underlying drivers and implications for the nation's fiscal market.
In a noteworthy trend, Azerbaijani individuals have begun favoring dollar deposits over mandatory ones, marking a significant shift in the country's banking landscape. According to statistical data released by the Central Bank of Azerbaijan, the volume of individual deposits in Azerbaijani banks surged by 1.3% in January 2024, reaching a total of 13 billion 116.17 million manats.
On Wednesday, February 28, the XII Russian-Azerbaijani Interregional Forum is being held in Mineralnye Vody under the chairmanship of Deputy Prime Ministers of Russia and Azerbaijan Alexey Overchuk and Shahin Mustafayev. Representatives of Russia and Azerbaijan are discussing promising transport and logistics projects, opportunities to promote environmental dialogue on the eve of the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) in Baku, as well as new vectors of cooperation in industrial sectors.
The Russian government's decision to impose a six-month ban on the export of gasoline starting from March 1 has stirred concerns within Azerbaijan's energy sector. With Azerbaijan heavily reliant on gasoline imports, particularly from Russia, questions arise about the potential impact of this ban on domestic fuel prices and the country's broader energy strategy.