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National Bank of Azerbaijan will further soften monetary policy in 2009

11 November 2008 16:11 (UTC +04:00)

â€This year’s discount rate was gradually reduced from 15% to 10%. This policy will continue in 2009 as the economy and financial institutions need cheap money,â€ he added.
Rustamov said that manat exchange rate will be adjusted to the financial stability next year.
He said that the manat strengthened 4.4% against the U.S. dollar and more than 15%. against the euro, and the exchange rate policy allows neutralizing the imported inflation.
According to him, falling oil prices will not affect the budget revenue.
â€œApproximately 75% of oil revenues in the state budget of Azerbaijan are protected from fluctuations in the world market. Building the budget revenue on lower prices is an appropriate response to developments and trends in the financial and commodity markets,â€ he added.
Under the budget outlook, revenues are projected to rise 16.1% to AZN 12.177 billion (27.9% of GDP) and expenditures are expected to increase 1.4% to AZN 12.355 billion (28.3% of GDP).
Revenues of consolidated budget are projected to rise 29.9% to AZN 22.680 billion and expenditures 15.5% to AZN 14.758 billion.
Azerbaijanâ€™s state budget was built on revenue estimates of oil priced at US$70 a barrel for 2008.