Azerbaijan is beneficiary of recovery trend in hydrocarbon market - Gazprombank
Date
2/13/2022 12:12:13 AM
(MENAFN- Trend News Agency)
BAKU, Azerbaijan, Feb. 13
By Sadraddin Aghjayev – Trend:
Azerbaijan is the beneficiary of the recovery trend which is
observed today in the hydrocarbon market, Deputy Head of the Market
Research Department at the Russian Gazprombank Gulnara Khaidarshina
told Trend .
Khaidarshina reminded that brent crude oil is traded at $88 per
barrel, which is by 37 percent more than the pre-crisis level and
by 4.4 times more than the lowest level since the beginning of the
COVID-19 pandemic, which we observed in the second half of April
2020.
'Of course, high oil prices support the Azerbaijani manat rate,'
the deputy head of the department added. 'I would like to determine
two channels through which this supporting effect is coming.
Firstly, the Azerbaijani economy benefits from high inflows of
export earnings due to high oil prices.'
Khaidarshina said that for example, Azerbaijani export volume
increased by 1.5 times over 11 months of 2021.
'Taking into account that the share of oil and gas products in
export volume is close to 90 percent, this increase in export
earnings has been mainly stimulated by high prices and growing
demand for hydrocarbons,' deputy head of the department said.
Khaidarshina said that high inflows of export earnings
contribute to the stability of the situation in the Azerbaijani
foreign exchange market and the growth of the assets of the State
Oil Fund of Azerbaijan (SOFAZ).
'Despite the stimulating fiscal policy, SOFAZ's assets grew by
3.4 percent and exceeded $45 billion as of 2021,' the deputy head
of the department said. 'Secondly, high oil prices allow to fix the
devaluation expectations of the population and avoid the excess
demand for foreign currency in the market.'
Khaidarshina added that this also contributes to the stable
exchange rate of the manat and allows minimizing the spending of
the sovereign fund on interventions.
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