V. Ahmadov:  the rate of manat  will drop,  but therewill no be  sharp devaluation

The national currency of Azerbaijan has not yet found its market value, and this is due to the further depreciation of the manat to the US dollar, despite the rise in oil prices, said a member of the parliamentary committee on economic policy Vahid Ahmedov in an interview with the radio "Voice of America" and Turan. He considers it  is right that the CBA does not intervene adjustment of exchange rate of manat, which "sooner or later have to find its  market value." Being asked to predict the dollar-manat rate  in the near future, Ahmadov said he does not expect a new sharp devaluation of the manat.

At the same time, he noted that despite the increase in oil prices, AZN will continue declining until it reaches the market price. Commenting on the dollarization of the Azerbaijani economy and the negative effects of this, Ahmedov said that this creates great risks for AZN and the financial market as a whole.

To prevent it the  President created the Chamber of Control for the financial markets, other decisions, laws, decrees have been adopted.

In order to restore confidence in the manat, the Parliament also adopted the Law on the full deposit insurance. But it will take time to return people’s trust  and returning the contributions in banks.

When asked to evaluate the work of the Ministry of Finance, Central Bank and  EconomyMinisry under the economiccrisis, Ahmadov said that thanks to the concerted action of these institutions, in 2015 it became possible to  keep inflation at 4%.  There were not problems with the execution of the state budget, 1% increase of  GDPwas reached, while industry grew by 8%.

In connection with the establishment of the Chamber of Control for the financial markets, there may be some differences with the CBA, but over time these differences will  dispppear, said the deputy. -16 / 03A-

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