Real rate on foreign currency deposits exceeds 107% in Azerbaijan by end of 2015

Real rate on foreign currency deposits exceeds 107% in Azerbaijan by end of 2015

Devaluation of the national currency triggered a giant surge of real rates on foreign currency deposits in Azerbaijan last year.

According to the CBA, by the end of 2015 the average deposit rate of the Azerbaijani banks made up 8.08% against 8.86% by the end of 2014 and the real deposit rate (minus annual inflation of 3.7%) reached 4.38% versus 7.46%.

The average deposit rate in foreign currency was equal to 8.06% by the end of 2015 against 9.24% by the end of 2014. The devaluation of the manat to the US dollar for 2015 made up 199%.

As deposits in euro and other currencies are small (compared to dollar assets), the real rate on currency deposits reached 107.06%.

The average rate of legal entities’ bank deposits in the national currency was equal to 5.82% against 5.51% and the real rate 2.12% against 4.41%.

The enterprises’ deposits rate in foreign currency made 4.81% against 6% and the real deposit rate – 93.81%.

The average rate of private persons’ deposits in the banks in national currency was equal to 9.14% against 9.45% and the real rate - 5.44% against 8.05%. The retail deposit rate in foreign currency made up 8.83% against 9.78% and the real rate – 107.83%.

Baku, Fineko/abc.az. 

Inflation in Azerbaijan slows down to 0.4% a month

Inflation in Azerbaijan slows down to 0.4% a month

Azerbaijan can expect a repeat of deflationary records of 2015.

The State Statistics Committee reports that in February 2016 it was registered a decline in the growth rate of the consumer price index (CPI) to 0.4% against a rise of 5.8% in January. As a result, for the current year consumer inflation of 6.2% was accumulated versus 7.6% for 2015.

In the second month of the current year the food prices rose by 0.6%, prices for services by 0.1%, while prices for nonfood goods by 0.6%.


Baku, Fineko/abc.az. 

A total of 1,494 kg of gold was produced in Azerbaijan in January-October this year

A total of 1,494 kg of gold was produced in Azerbaijan in January-October this year

This constitutes a drop of 10.8% compared to the same period last year, the sources in the State Statistics Committee said.

The silver production increased 10.7% to settle at 1,063 kg over this period.

As of 1 November, the stocks of finished metal ores and concentrates totaled 50 kg with gold accounting for 29 kg and silver 21 kg of this volume.

Azerbaijan produced 1,965 tonnes of metal ore in January-October.

Gun.Az

Central Bank chief forecasts double-digit growth

Central Bank chief forecasts double-digit growth

Central Bank Chairman Elman Rustamov is forecasting double-digit growth in Azerbaijan over the next 10 years.

He told parliament today that the balance of payments surplus would reach $14bn this year, while the country's total currency stocks are approaching $42bn, APA reported.

“We don’t see any macroeconomic risk for Azerbaijan’s economy in the medium term. According to our calculations, Azerbaijan will have a double-digit rate of development – 10-12% growth – in the next 10 years.”

He said that achieving this growth would require foreign investment and suggested reducing taxes in order to attract more investment.
"The flow of foreign investment to Azerbaijan requires a lower tax burden than than in the countries where the capital comes from. Azerbaijan is in 95th place in the world in this respect while Kazakhstan and Georgia lag behind. I think that the tax burden needs to be reduced and at the same time the tax burden should be redirected from production to consumption. In neighbouring Turkey there is a heavy tax burden on jewellery, decorative items and cars. Social taxes are high too. We think that social taxes should be competitive."
Commenting on the draft state budget for next year, Rustamov said that it had been drafted very well.
“It has resilience. Budget expenditure is 37% of national product and this is the G20 limit. The base price set for oil is conservative - the IMF is forecasting $102. Social programs are continuing. We are not stopping any social program or slowing the tempo."
Azerbaijan's draft budget for 2012 sets the price of oil at $80 per barrel.
The Central Banker told parliament it was important to keep a lid on inflation.
"We need to try to keep inflation no higher than 5%."
He said it was important to keep the manat exchange rate low to promote exports.
APA