The government has unveiled the need for foreign currency to cover the expenses stipulated in the 2017 draft state budget. The government needs 3 billion 61 million US dollars or 5 billion AZN in national currency, or a third of the state budget.
In view of financing the construction of TANAP by the Oil Fund the total amount of direct foreign exchange expenditures of the state will be at least $ 3.5 billion. The economist Rovshan Agayev believes the high amount of foreign currency liabilities of the government “makes the position of AZN even more fragile.”
According to Agayev, foreign exchange income of the consolidated budget for 2017 will be $ 5.4 billion, or 8.9 billion AZN. This means that 65% of foreign exchange earnings will go to cover the foreign currency obligations of the government. "In the best case, only $ 2 billion may be allocated to support the economy outside the government," the expert said.
According to Agayev, the main problem of the economy of Azerbaijan is that only 10% of foreign exchange earnings of the country are provided by the private sector. At the same time the private sector accounts for 80% of imports. ----08D
Economics
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On July 26, the Ministry of Economy hosted a meeting with entrepreneurs from the non-oil industry to explore ways to stimulate local production and enhance export potential.
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Azerbaijani internet service providers Aztelekom and Baktelekom will introduce substantial changes to their pricing structure starting August 15, the companies announced today. Under the new tariffs, the minimum internet speed will rise to 100 Mbit/s, with the cost per Mbit/s decreasing from 0.45 AZN to 0.25 AZN. As a result, monthly charges will be set at 25 AZN for 100 Mbit/s, 30 AZN for 150 Mbit/s, and 36 AZN for 250 Mbit/s.
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Independent experts suggest that Azerbaijan may be on the verge of another devaluation of its currency, the manat, due to a shrinking trade and payment surplus. The anticipated economic adjustments come amidst a decline in foreign currency inflows and reduced oil production.
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Azerbaijan’s Foreign Minister Jeyhun Bayramov met today with Ahmed Moallim Figi, the Minister of Foreign Affairs and International Cooperation of Somalia, at the Azerbaijani Foreign Ministry. This meeting followed a discussion held the previous day between Figi and Azerbaijan’s Economy Minister Mikail Jabbarov.
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