Azerbaijani Economy 7 december — 11:39

Finance Ministry accuses MP Vahid Ahmadov of provocation

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The words of the Minister of Finance of Azerbaijan, Samir Sharifov, expressed on December 4 during an interview on a state television channel in connection with the strengthening of the manat, are quite clear and understandable, and interpreting them as a devaluation announcement is either a conscious provocation or an amateurish approach. This was stated by the Spokesperson of the Ministry of Finance of Azerbaijan, Mais Piriyev.

He noted that some 'experts' and 'economists,' isolating a certain part of the context, consciously or unconsciously, on social networks and on a number of sites tried to distort the essence of what was said by the minister. However, a controversial and provocative attitude towards the minister’s words in connection with the strengthening of the manat several days after the 2019 budget was discussed, by an experienced politician and member of the Economic Policy, Industry and Entrepreneurship Committee of the Milli Majlis (National Assembly), Vahid Ahmadov is only regrettable.

'During his speech, the minister noted that a sharp, excessive strengthening of the manat rate affects the activities of domestic producers, creates attractive conditions for imports, which is not in the interests of the Azerbaijani state. That is why as part of targeted economic reforms carried out in recent years under the leadership of state, a new fiscal rule has been adopted so that through this rule the state regulates sales in the domestic foreign exchange market of foreign currency from the oil sector in the framework established by the state budget. Because even greater use of excess oil revenues creates pressure to strengthen the manat rate, and this, as the minister noted, negatively affects exports, leads to an increase in imports, which is unprofitable for national production, including those involved in exporting. Therefore, to eliminate these negative impacts, state budget expenditures must be kept within the established framework,' Piriyev said.

He stressed that the macroeconomic stability achieved so far and its preservation in the future are connected precisely with the observance of the fiscal rule, support by the fiscal policy of the monetary policy pursued by the Central Bank. And this currently provides, and will ensure, and after that, the stability of the manat rate.

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