There is no reason for long-term weakening of the manat. Devaluation may occur in two cases: if the trade balance deficit is observed long or foreign exchange reserves are absent. This was said in an interview with AzTV by the head of the Central Bank of Azerbaijan Elman Rustamov.
"Our foreign exchange reserves account for almost 70% of GDP and nearly 2.5 times the amount of AZN in circulation," he said. At the same time Rustamov considers unfounded concern of the citizens with depreciation of the manat.
In 2008-2011, during the global financial crisis, Azerbaijan's exchange rate policy was based on the mechanism of the two-currency basket including the dollar and the euro. This allows for a more flexible exchange rate policy. However, in the context of high oil prices and high balance of payments surplus, the manat rose in price relative to the euro. At the same time, the euro began to fall against the dollar. Therefore, the manat has grown considerably against the euro.
A strong currency has its own advantages, such as low inflation, but it is bad for export.
Note that from February 16, CBA has reduced the rate of the manat to the US dollar, and in two days the dollar rose to AZN 0.11% - up to 0.7853. -02D-
Economics
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Azerbaijan’s oil and gas sector continues to ensure stable employment: according to the State Statistics Committee, 31.7 thousand people were employed in the industry during the first nine months of 2024. The sector remains a crucial pillar of the national economy, offering some of the highest salaries in the country, although differences in pay between state-owned and private enterprises are noticeable.
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In a move to accelerate technological advancements in telecommunications, the Azerbaijani Investment Holding (AIH) and China’s FiberHome Telecommunication Technologies Co., Ltd. signed a Memorandum of Understanding (MoU) in Baku on October 15. The agreement is aimed at fostering closer collaboration in telecommunications technology, marking a significant step in Azerbaijan’s ambitions to expand its digital infrastructure and introduce cutting-edge business practices.
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In the first eight months of 2024, Azerbaijan's legal entities and individuals engaged in trade operations with partners from 172 countries, according to data released by the State Statistics Committee. The country exported goods to 117 nations while importing from 161, highlighting the breadth of its trade relations. However, foreign trade turnover decreased by 14.93% compared to the same period in 2023, reflecting global economic challenges and shifts in demand.
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Azerbaijan and Iran are actively discussing the construction of a strategic railway line that will connect the East Zangezur Economic Region with the Nakhchivan Autonomous Republic, according to Rovshan Rustamov, Chairman of Azerbaijan Railways CJSC. Rustamov disclosed the details of these talks during his recent visit to Iran, where he met with Jabbar Ali Zakeri Sardrodi, head of the Iranian Railway Administration.
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