During 10 months the international reserves (ISI) of the Central Bank of Azerbaijan decreased by about 60%. On May 15, reserves amounted to $ 10,581,540,000 against $ 17,782,940,000 in August 2014, when the ISI was marked by a peak.
We can say that the decisive role was played by 35% devaluation of the manat on February 21 this year. A month before it on 15 January to 15 February was a sharp reduction in the ISI - to $ 1.7 billion and after that, as compared with the mid-May ISI decreased by 29% or $ 2.8 billion.
International state reserves are those external assets that are available to and controlled by monetary authorities regulation in order to meet the funding needs of balance of payments deficits, interventions in the foreign exchange markets to influence the exchange rate and other related purposes (such as maintaining confidence in the national currency and the economy, as well as a basis for foreign borrowing). Reserve assets must be foreign currency assets and real ones. International reserves include only high-quality assets. -0-
Economics
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Azerbaijan’s economy, which is heavily dependent on oil revenues, faces a stark warning in the 2021 report by Carbon Tracker titled “Beyond the Oil States: The Urgent Need to Reduce Dependence on Oil in the Context of the Energy Transition.” The report ranks Azerbaijan among the most vulnerable oil-dependent countries, placing it in the "5th group" — a category reserved for nations expected to experience a decline in oil and gas revenues exceeding 40% over the next decade. This group includes Angola, Bahrain, Timor-Leste, Equatorial Guinea, Oman, and South Sudan, highlighting shared economic risks for these states.
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Azerbaijan's non-oil and gas exports rose 3.5% year-on-year to $2.8 billion during the first ten months of 2024, the Center for Analysis of Economic Reforms and Communication (CAERC) reported in its November "Export Review."
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Azerbaijan Railways CJSC (ADY) will modify the schedules for commuter and domestic trains in line with the Cabinet of Ministers' decision to adjust work and rest days in November, aiming to ensure safe and comfortable travel during the COP29 event, the company announced.
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In Azerbaijan, the government has increasingly relied on tax exemptions for imported goods as a tool to stabilize domestic market prices. The exemption from the 18% VAT on wheat imports, extended this year, exemplifies this approach. New measures have also been introduced, including tax relief on imports of electric vehicle chargers, while exemptions for high-cost medications are currently under discussion. Notably, defense imports continue to be free from taxes and customs duties.
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