Press Review - 12/01/2017

Evaluation of the ideas of Islamic solidarity, economic backwardness, the possible consequences of switching to a floating rate of the manat, and reducing the Oil Fund's revenues are the leading media topics.

The Azerbaijan newspaper in an article entitled ‘From tolerance to Islamic solidarity’ praises the decision of Ilham Aliyev that declared 2017 Year of Islamic Solidarity.

The website Azadliq.info ironically reports on the statement made by Ilham Aliyev at the meeting of the Cabinet of Ministers of Azerbaijan on finding a worthy way out of the crisis in 2016.

The expert Nemat Aliyev denies the figures. According to him, GDP decreased by 18.5 billion dollars in 2014-2016.

In 2016 the income in the non-oil sector decreased 1.7 times. The average salary decreased from 566 dollars in 2014 to 314 dollars in 2016

No serious steps are taken to combat corruption and unfair competition, and the price of utilities increases.

In 2017 Azerbaijan will have severe problems and the situation will hardly improve.

Novoye Vremya writes the floating rate will accelerate inflation.

At the meeting, the head of the Central Bank Elman Rustamov with the leaders of the largest banks made a sensational decision to abolish the margin of +/- 4% set by the Bank in foreign exchange rates.

Cancelling the margin actually means a transition to a floating exchange rate of the manat. Now the exchange rate will be set by the banks without restrictive measures, based on the actual supply and demand.

The expert Samir Aliyev in an interview with Bizim Yol criticizes the decision to transfer AZN 7.5 billion from the Petroleum Fund to CBA.

In a month it will be 352 million dollars. At the same time the foreign exchange market deficit will be 300-400 million dollars. However, at the expense of the Petroleum Fund the Central Bank will be only temporarily able to keep the exchange rates.

Stabilization of the rate is possible with a sustainable macroeconomic stability. -0-