Manat: Stability or Sustainability?

On April of last year, I wrote about the then-mounting pressure on Azerbaijani manat (AZN) and concluded that we can expect the currency to be devaluated by the end of the year 2020. However, time has shown that manat managed to preserve its stability. I decided to write this post to analyse why my prediction was inaccurate and to mention couple of relevant points.

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Story of the Unflown Airport – Zagatala International Airport

It always seemed odd to me that a country like Azerbaijan with small area/population and underdeveloped tourism sector has 6 international airports. To add insult to the injury, the government recently announced the construction of another international airport in Fuzuli. There are even rumors of one more airport to be built in Kalbajar in the near future. Considering all these, I decided to take the specific example of Zagatala and showcase why such projects are likely to bring minimal benefit at best.

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State Budget of Azerbaijan 2021

Due to the recent war in Karabakh, the presentation, discussion, and approval of the state budget of Azerbaijan was delayed until the very last days of December. As the proposal has been adopted by the Parliament and signed into law by the President, I have decided to take a brief look and share with you the points that I deem noteworthy.

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Oil Sector of Azerbaijan in 2020 and its Implications for the State Budget

The Coronavirus pandemic has affected almost every sector of the global economy in the first five months of 2020. To add insult to injury, the economy of Azerbaijan has been further pressured by the historically low oil prices. In this post, I decided to take a brief look at the oil sector of Azerbaijan today and its potential implications for us in the near future.

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An Unlikely Hero – How Gold Can Aid Manat?

In my latest post, I delved into the topic of Azerbaijani Manat’s grim-looking short-term future following the surging demand for foreign exchange in March and concluded that there is a substantial risk of devaluation during 2020. In this post, I am going to share a concept on how the government can at least delay this devaluation for the near future and avoid exacerbating the economic situation in the country already troubled by coronavirus epidemic…

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Fiscal Rule of Azerbaijan: A Positive First Step?

As a broad term, fiscal policy refers to the management of taxes and expenditures by governments. It is certainly the number one tool that the governments utilize to intervene into the national economy. That intervention, on the other hand, should have definite restraints, which brings us to the topic of fiscal rules…

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