Elman Rustamov: Azerbaijan’s strategic foreign exchange reserves equals 28-month imports

Elman Rustamov: Azerbaijan’s strategic foreign exchange reserves equals  28-month imports
# 11 November 2008 16:03 (UTC +04:00)
Baku. Rashad Suleymanov - APA-Economics. There is no fundamental macroeconomic reason which would put Azerbaijan in the face of global financial crisis, said Elman Rustamov, Chairman of the National Bank of Azerbaijan.
”Currently, some countries suffer from deficits in the balance of payment. Azerbaijan is going to have a surplus in its balance of payments at the year-end. Even if the price of oil continues to drop in 2009, the balance of payments surplus will exceed $10 billion dollars,” he added.
He noted that Azerbaijan’s strategic foreign exchange reserves reached $18.2 billion, total external debt $8 billion, foreign creditor (asset) position is $11 billion.
“This means that our foreign exchange reserves are twice as much as all debts we owe. The large amount of liquid assets allows Azerbaijan to solve budgetary and internal monetary problems, as well as to cover the balance of payments deficit,” he noted.
Rustamov compared that the strategic reserves can meet the country’s demand for imports during 28 months.
In international practice, this indicator should be at least 3 months.
«This is not to say that we are on the sidelines of world trends. The economy of Azerbaijan remarkable depends on oil prices. Each year, our citizens living abroad remit more than $1 billion home which also has some influence. Nevertheless, the Government has sufficient levers,” he underlined.
According to him, per capita GDP has reached $6 000 in Azerbaijan. The real purchasing power parity is more than $10 000.
Over the past 5 years, about $45 billion has been invested in the country’s economy.
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