CBA: Azerbaijan’s strategic foreign exchange reserves expected to grow by end-year

Since the beginning of 2021, Azerbaijan’s strategic foreign exchange reserves have grown by $2 billion, Report informs referring to Governor of the Central Bank of Azerbaijan (CBA) Elman Rustamov, who noted that this trend will continue until the end of the year.

The head of the Central Bank expressed his expectations regarding maintaining further growth and balance of payments surplus.

“Following the first half of the year, the current account surplus amounted to 8.1% of GDP,” Rustamov noted, stressing that there is no decline, as it is supported by the rise in oil prices on global markets.

He added that there are various factors affecting the growth of the balance of payments surplus. “It is difficult to predict more precisely, but there are expectations of 4-5% growth compared to last year,” Rustamov said.

The overall surplus of Azerbaijan’s balance of payments for the first half of this year amounted to $1.261 billion. During the same period last year, a deficit of $957.5 million was formed in the balance of payments.

The total surplus was formed at the expense of the current account surplus of $1.878 billion (3.1-fold increase), the capital account deficit - $4.6 million (-40.3%), the financial account deficit - $578.5 million (-39%), the balance deficit - $34 million (17.6-fold decline).