Gubad Ibadoglu: If CBA Does Not Really Rely on Diversified Economy, Azerbaijan Will Face Third Wave of Devaluation
The head of the Central Bank of Azerbaijan Elman Rustamov said that the floating exchange rate of the manat does not mean lack of its control. CBA has already held its first auction in the market for the sale of currencies, with the operational framework. Now, it will offer the market currency in portions, tracking how supply and demand are formed.
Commenting on the statement, the Doctor of Economy Gubad Ibadoglu said that the central bank acts within the futile practice of spending currency reserves. About the same method was adhered to by the Central Bank of Kazakhstan, but it had the levers of real economy and won over time, making advancing steps two years ago.
If the CBA does not really rely on a diversified economy, the country will face the third wave of devaluation, the expert believes. --17D-
Economics
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Azerbaijan's financial standing continues to strengthen as the country's foreign currency reserves have surged to $71 billion as of January 1, 2025, according to the Ministry of Finance. This figure, which includes reserves held by the State Oil Fund of Azerbaijan (SOFAZ) and the Central Bank of Azerbaijan (CBA), far exceeds the nation's external debt, which stands at a fraction of its reserves, specifically nearly 14 times less. This robust reserve position reflects Azerbaijan's fiscal stability and the government’s strategic economic management.
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According to operational data from the Ministry of Energy of Azerbaijan, in January 2025, the country produced 2.3 million tons of oil, including condensate, and 3.9 billion cubic meters of gas.
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The State Oil Company of Azerbaijan (SOCAR) has opened a representative office in Albania and is set to launch a specific project this year, the Albanian company "Albgaz" announced.
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"Azerbaijan is currently among 54 middle-income countries," said Shahmar Movsumov, head of the Economic Affairs and Innovative Development Policy Department of the Presidential Administration, during the presentation of the World Bank’s World Development Report 2024 in Baku on February 10.
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