Azerbaijan may follow Kazakhstan’s suit and abandon currency limits to help boost export revenues, hamstrung by the slump in oil prices.
Oil and gas are Azerbaijan’s bread and butter, and the decline in petro-revenue means that the surplus in the country's current accounts -- the degree to which Azerbaijan exports more than it imports -- could shrink from $10 billion in 2014 to $2 billion this year, predicted Central Bank Chairperson Elman Rustamov, Trend reported.
As he primed parliament for the idea of a free-floating currency, Azerbaijan’s banker-in-chief took the politically correct step of presenting the change as a reflection of the country's growing integration with the global economy. To stay competitive as key trade partners devalue their currencies, Azerbaijan, the South Caucasus’ largest economy, must take far-reaching measures, the reasoning goes.
To read the full story