Search

Begin New Search Topic International Political Economy Publishing Institution Center for Economic and Social Development (CESD)

1. The cost of Azerbaijan’s leaving the Extractive Industries Transparency Initiative (EITI)

Author:
Ahmad Alili and Victoria Bittner
Publication Date:
03-2017
Content Type:
Working Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
Azerbaijan’s membership in the EITI is considered a key asset to the country’s oil and natural gas economy. As a result of leaving the EITI, Azerbaijan might be regarded as ineligible for future loans by the World Bank and other international institutions for projects, such as the Southern Gas Corridor Project (TAP&TANAP). It is quite an important decision for the country, which was a founding member of the initiative, to leave it. It is going to have considerable effects on the economy and civil society in Azerbaijan. This article aims to shed light on the possible domestic developments of Azerbaijan’s suspension of the EITI.
Topic:
Economics and International Political Economy
Political Geography:
Azerbaijan

2. Assessment on Real Effective Exchange Rate in Azerbaijan: 2017 Outlook

Author:
Rashad Hasanov
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
The implementation of fixed exchange rate regime for 20 years (1994-2014) resulted in a formation of an insecure currency position for all interest groups, including the government and business. Although the pressures on manat have commenced to increase since the second half of 2014, the Central Bank and the government failed in comprehending the process. That is why, promising statements have been made to the general public. But the following events proved the underlying problem more severe and the implemented monetary, fiscal and exchange rate policies ineffective in the long-term. Business, citizens, as well as state-owned enterprises faced serious financial losses. The country experienced serious threats with regard to its financial sustainability.
Topic:
International Political Economy, Monetary Policy, and Finance
Political Geography:
Azerbaijan

3. Macroeconomic Forecasts for Azerbaijan in 2017: Independent View

Author:
Rashad Hasanov
Publication Date:
01-2017
Content Type:
Working Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
Without a doubt, 2016 is considered as one of the painful years for the economy of the country. That is to say, the economy of the country encountered nearly 4.0 % decline [during January-November 2016 GDP fell by 3.9% compared with the previous year, SSCRA1], the depreciation of national currency continued, as a result, manat lost its value by 12.5% during the year. The depreciation of national currency reached 57% from January, 2015 until December, 2016. Inflation rate increased to 12.1%, hitting a two-digit level first time since 2008 and consequently, real income of population shrank by 3.2%. The tight monetary and credit policies of the government led to weakening economic activity, lending level fell to the minimum, 11 banks were closed (one of them being systematically important). The state budget revenues and expenditures executed with respectively 16.1% and 10% decrease in 2016, compared with the January-November, 2015.
Topic:
Economics, International Political Economy, and Finance
Political Geography:
Azerbaijan

4. Currency market in Azerbaijan: Challenging environment for the national currency

Author:
Rashad Hasanov
Publication Date:
09-2016
Content Type:
Research Paper
Institution:
Center for Economic and Social Development (CESD)
Abstract:
In August, the exchange rate of national currency of Azerbaijan-“Manat” beat all historical records. That is to say, the exchange rate was 1 USD= 1.61 Manat in previous month . It should be noted that, the exchange rate hit 1 USD= 1.6 Manat in March, 2016. Since the second half of 2014, due to the fall of oil prices in the world markets there is a visible pressure on the national currency ‘Manat’. Overall, the Azerbaijani “Manat” lost 49.6% of its value in 2015 and in addition, a depreciation of more than 3% in the first 8 months of 2016, the losses could reach 52.2%. Although the occurring rapid dollarization and the observed stagnation in the business environment especially in imports in the first months of 2015 and 2016 resulted in short-term reduction in foreign exchange demand in the March-May period of this year and strengthening the exchange rate of USD/Manat at the level of 1.49, the process of depreciation proceeded again afterwards.
Topic:
Economics, International Political Economy, and Finance
Political Geography:
Azerbaijan