The country's leadership did not dare to disturb the foreign exchange funds of oligarchs abroad due to low oil prices, and used the tested method - "kicked" pockets of small savers. Now Aliyev family will be able to prepare for the EuroGames - 2015, showing the world the level of hospitality (though the world does not need it), but it will be done against the background of the curses of all population groups. According to experts, bankers have lost up to 10% of investors and 30% of revenue, and consumer price inflation has already reached 35%, eating allowances to state employees, including pensioners and socially vulnerable citizens.
Last Saturday (in order to lessen the reaction of population) the CBA devalued the national currency by 33.5% against the US dollar and 30.0% against the euro amid falling oil prices and the economic crisis in Russia, although the country's leadership not admits, referring to the low level of attachment to the Russian economy. New rate is 1.05 manat per dollar and 1.19 per euro, against 0.78 manat per dollar and 0.89 per euro on Friday. According to the official version, the "decision was made to maintain the diversification of the economy of Azerbaijan, strengthen its export potential ... and ensure the sustainability of the balance of payments." But even according to official figures, oil and oil products, along with gas, make up 91% of exports from Azerbaijan, in addition, they account for three-quarters of the state budget revenues. Does it mean that the "unparalleled" government in the coming months plan to diversify its export portfolio?
The CBA began to prepare the population to events even on February 16 provocatively abandoning binding manat to the US dollar, and began using a dollar and euro basket for controlling the national currency which came under pressure from falling oil prices and the crisis in Russia. Chief financial regulator in December and mid-February actively sold the currency to protect manat. In January this year it's foreign exchange reserves declined by $ 1 billion - up to $ 12.68 billion, and last December, on the protection of manat were spent nearly $ 1.13 billion.
According to representatives of the Central Bank, almost all funds were used to convert bank accounts from manat to dollar and euro.
According to analysts, the stated purpose of the national authorities (to ensure economic growth at 4.4%) was not supported by actual performance against the backdrop of budget projections, based on world prices of $ 90 per barrel. Today Brent oil is sold at $60 a barrel. --17D-
Economics
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The INMerge Innovation Summit, organized by PASHA Holding, continued in Baku on Friday. The summit brought together leading industry leaders, startups, and investors in the fields of fintech, e-commerce, artificial intelligence, and digital business.
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The Cabinet of Ministers of the Republic of Azerbaijan has approved a new regulation titled “Procedure for the Transfer of Regulatory Functions and Duties for Flight Safety Supervision,” aligning with the country’s obligations under international civil aviation agreements.
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In September 2024, Azerbaijan experienced a noticeable increase in the Consumer Price Index (CPI), reflecting broader economic trends and the impact of various factors on the market. The CPI, a critical indicator of inflation, rose by 3.5% compared to the same month in 2023. This growth was driven by several components, including food and non-food products, as well as paid services provided to the population.
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The shareholders of JSC "Saba" (Səba) have scheduled an extraordinary general meeting for October 28 at 15:00, where the main agenda item will be the liquidation of the joint-stock company and the formation of a liquidation commission, according to company announcements.
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