Independent economists sent a recommendation to the Central Bank and the Cabinet due to the devaluation of the manat

Leading experts in the field of economy regard the decision of the Central Bank of Azerbaijan dated February 21, the devaluation of the manat, erroneous and far-reaching, negative consequences. This is stated in the resolution of the conference: "Evaluation of the effects on the economy of Azerbaijan and the expected results from the devaluation of the manat", carried out by the Movement for Democracy and Prosperity February 27 at the International Press Center.

Experts point out that the decision of the Central Bank was not sufficiently substantiated. It will increase the risks for investments in the Azerbaijani economy, worsen the situation of the country in the international rankings, creates the risk of economic crisis.

The conference participants consider that it is unacceptable that the authorities try to put on  the business community and citizens the difficulties caused by the devaluation, and the refusal to compensate losses from the administrative decision of the state structure.

The resolution notes that the national economy is controlled not by market mechanisms, but strong-willed administrative decisions, which creates additional risks in times of crisis.

The Conference recommended that the authorities in making such decisions to take into account the opinion of independent experts.

The resolution made  nine specific recommendations for the Central Bank and the Cabinet.

 The Central Bank should:

1. Adjust the policy statement on monetary and financial stability in 2015.

2. Revise regulations related to the regulation of foreign exchange operations, to improve them in accordance with current conditions, to prevent speculation on the part of banks and exchange offices.

3. To regulate interest rates of deposits and loans, quickly use the available monetary instruments to reduce the difference between average interest rates.

4. To expand  the  infrastructure of cashless  calculations, and reduce the shadow money  circulation and  the dollarization of the economy.

5. Expand the reforms, based on the current situation.

The Cabinet of Ministers should:

1. Ensure normal living standards, increase pensions and wages by indexing, extend social protection and security, increase social assistance packages.

2. Create a favorable environment for investment, expand antitrust activities to prevent unwarranted government intervention in the affairs of a free business.

3. Strengthen the fight against unjustified price increases business entities that seek profit.

4. Create permanent expert advice from independent economists.

The debate participants also called for consumers and business people to act under the current situation carefully and make informed rational decisions in accordance with the recommendations of economists and lawyers.-0--