12:28 - 24.12.2019

---

December 24, Fineko/abc.az. The national currency rates in Russia and Kazakhstan, which switched to a floating rate in the same period with Azerbaijan, have shown different results.

ABC.AZ reports that the above-said statement was made by economist expert Samir Aliyev, when expressing his attitude towards the existing floating exchange rate regime in Azerbaijan.

The expert compared the situation in Azerbaijan with the situation in those countries and gave examples: "For instance, in Russia the ruble in 2019 rose by 7.5% to the US dollar, and during this time the exchange rate of the dollar has changed by 62.4-67.2 rubles. In Kazakhstan the tenge has fallen by 0.3% this year. During this time the exchange rate of the coin has changed in the range of 373-390 tenge.

It should be borne in mind that compared with Azerbaijan, the dependence of the economy of these countries on oil is low. These countries have not even fully moved to a floating exchange rate, and the Central Bank is pursuing policy of regulation. While maintaining a stable exchange rate, the Central Bank, on the one hand, tries to minimize the impact of import inflation and on the other hand, to protect the fragile financial system and create stable environment for attracting foreign investments. Although this step has justified itself in the current period, the current policy is dangerous for the long-term period. In the future, especially amid the pessimistic forecasts on oil prices, the current exchange rate policy may fail in macroeconomic stability."

By Elmir Murad