Rouble exchange rate: how is the Azeri economy dependent on it? Rss 11 topics и One message

Dec 31, 2014 15:48

76 messages

The final link in the chain of implications of the Ukrainian crisis and subsequent exchange of economic sanctions among Russia, EU and USA was a serious drop of the rouble exchange rate and oil prices, which affects the economy not only of Russia, but of other countries, in particular, of Azerbaijan.The user with the nick Roma, however, feels no great worry about the mess in the markets: "Our manta is rigidly tied, first of all, to the US dollar, while the latter is tied to the oil price. Thus, during the 2008 crisis, oil went down to 40 dollars per barrel, while the manat remained at 0.78 per dollar, even when last year oil went up to 123 dollars per barrel. From the viewpoint of an ordinary citizen, it's profitable to have this exchange rate, but it makes locally-made goods non-competitive, and tells negatively on the state budget and decreases the reserves of the National Bank. This exchange rate suits local oligarchs, they are same as high-ranking bureaucrats, who have monopolized the imports."The user with the nick vosov objects by indicating that almost half of capable citizens of Azerbaijan work in Russia and maintain their families and relatives in their homeland by earning roubles: "I support Roma's opinion; and I'm happy that your Azerbaijani currency is solid like a stone from the Kurmukhchai River. But, in general, the rouble downfall is seriously touching on the economic and social interests of many Azerbaijanis, and the country's economy. Out of 4.5 million capable citizens of the country, about 2 million mainly work in Russia and other countries; the money transfers they send get depreciated, that is, their families and relatives will buy less goods and services. Thus, they will invest less into social economy of Azerbaijan. This will affect the progress rates of the spheres of construction and services. Thus, the level of life in Azerbaijan will degrade. The fact that the national currency is strong brings no warmth or cold to an ordinary citizen of Azerbaijan, maybe more cold."The user Vito believes it an exaggeration to think that the Azerbaijani economy depends on money transfers from Russia: "vosov, from when has the Azerbaijani economy began depending on 'investing' the transfers received from Russia? Haven't you, by chance, mixed it up with Armenia? Your opinion is wrong... strong currency is warm... of course all countries are interconnected economically... it will be less comfortable... but not fatal!"By their largest count of votes, our readers supported the opinion of the user with the nick borcali, who evidenced the already established crisis in the building sphere in Azerbaijan:"Roma, you should keep tour money in some strong currency, it's profitable. Since we have already the third economic crisis, it's hard to predict what currency will be strong. It's better to keep assets in real estate and precious metals and stones. Of course, the rouble drop has affected Azerbaijan. The residential rates go down; and in future we'll have problems in construction, while other economy sectors will be affected insignificantly, if at all."

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