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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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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