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Expert: I don`t think `spare` money supply in manats creates serious risk

11.03.2020,16:30


March 11, Fineko/abc.az. Azerbaijan's economy has not grown over the past 4 years.

ABC.AZ reports that the statement was made by expert economist Rovshan Agayev.

According to the expert, the calculation of national income at 2010 prices shows that the real scale of the Azerbaijani economy in 2019 was at the level of 2014.

The expert noted that if the economy has not grown, I don’t think the mass of spare manats to be converted into currency within 4 years will create a serious risk for the currency market - at best, the unlimited sale of dollars can lead to an outflow of 15-20% of existing reserves:

"But since they have the money needed for money, part of this exchange will be converted from manats into dollars and returned to the banking sector. All this is necessary in order to suppress panic for the short term (maximum 6 months). If, of course, the cheap price era lasts longer, then there will be a different incentive and solutions will be needed. But now the most important thing for us is to avoid panic at a time when we need to win time for further clarification of the situation, and under more stable economic conditions - to make the most correct decisions related to real economic reforms. Be sure that decisions related to real reforms are the most effective way to suppress panic in the society in any scale."

By Elmir Murad