Ali Hasanov: Devaluation Was Inevitable

aide Ali Hasanov through Azertaj made a comment about a sharp weakening of the national currency December 21, calling the measure forced and unnecessary.

"In recent days, in Azerbaijan it was common knowledge that the process of transition to a" floating exchange rate" reached the inevitable limit, and the central bank was forced to reckon with it."

In most countries, including China, Russia, Turkey, Kazakhstan and others, the currencies have long been released to "free floating".

"Because of the stability and strength of AZN the domestic production in Azerbaijan gradually dropped. In this situation, liberalization of the exchange rate of the manat was inevitable."

Azerbaijan is an oil-producing country and is the main source of income for the state budget. Since the beginning of the year oil fell three times, and incomes of Azerbaijan also fell three times. The Central Bank of Azerbaijan for a long time tried to compensate for this deficit through its own resources. However, the constant regulation could cause even more severe blow to the country's economy, Hasanov said.

Then he made the interesting observation that the lowering of the price of oil is arranged by the United States. "For the economic weakening of Russia the US chose a policy of artificial influence on oil prices in the world. To this end, Washington first took control of OPEC and found various ways to limit the possibility of the organization to make decisions on prices. Then, America canceled the 40-year ban on oil exports. At the same time it increased the discount rate, which strengthened the position of the dollar, weakening the currencies of other countries," Hasanov said.

“Our government will try to make the consequences for citizens as painless as possible. We will take all steps to boost domestic production and to achieve the complete elimination of the shadow economy – monopolies and corruption,” he assured. -02D-