Finance

Home page

Finance

Azerbaijanâ€™s unfavorable balance of payments reaches $3.8 billion

16 September 2008 16:57 (UTC +04:00)

Baku. Vahab Rzayev â€“ APA-Economics. The total turnover of revenue receipts and payments of the balance of payment for January-June was $4 billion in Azerbaijan, said the National Bank of Azerbaijan.
95.7% of this was payments, most ($3.6 billion) of which was repatriation of profit for foreign investors by Azerbaijan International Operating Company (in the form of crude oil), salary paid to non-residents ($83.1 million) and interests paid on foreign loans ($165.2 million).
$172.2 million came to the country as revenue.
Of this, $36 million was State Oil Fundâ€™s, $80.6 million for the currency reserves owned by the National Bank, $14.4 million was interests accrued on bank assets managed abroad.
An imbalance in a nationâ€™s balance of payments in which payments made by the country exceed payments received by the country. This is also termed a balance of payments deficit. Itâ€™s considered unfavorable because more currency is flowing out of the country than is flowing in. Such an unequal flow of currency will reduce the supply of money in the nation and subsequently cause an increase in the exchange rate relative to the currencies of other nations.