President comments on manat depreciation

"Economy has its own laws, and Azerbaijan is part of the world. The works carried out in Azerbaijan deserve approval, and influential international financial institutions appraise our success. But the processes in the region affect us, and over past few months of the last year, tension on the CIS region, in some ways, has affected Azerbaijani economy”, President of the Republic of Azerbaijan Ilham Aliyev said at the meeting with staff of the Mingachevir City Central Hospital, APA reports.

"Our main issue is to protect the Azerbaijani people from possible risks, increase stability in the country and protect the people's choice", said the president.

"The negative processes taking place in the Middle East, and Europe and the CIS, had no impact on our country, as we are ready to protect ourself and our choices. But economic processes in the region, of course, had an impact on us. A few days ago have been modified the rate of manat. I should point out that in 2006 we had monetary reform. In 2005, a decision was made about it. In early 2006, our monetary reform was completed. Of course, the older generation remembers it. Until that time, one dollar was equal to 5,000 manat. We equalized manat to the dollar, 1 manat became equal to 1 dollar. And for 10 years, manat gradually strengthened against the dollar, "- said the president.

The head of State also said: "In fact, it showed the success of our economic reforms. But on the other hand, the events taking place in neighboring countries and the sharp devaluation of the national currency there had a negative impact on us. In addition, the sharp drop in global oil prices had a negative impact on our revenues. At the same time, a gradual strengthening of the manat have a negative impact on our economy. Given that a decision was made to slightly cheapen the manat".

"And that's what I said publicly in January at a conference on the socio-economic development of the regions, so that people know it and were ready. That it was not a surprise to anyone. Even then I said that manat strengthened, this has a negative impact on our economy. The processes occurring in the region, the fall in world oil prices leads to negative consequences. This was the first signal. Then the Central Bank issued a statement that gradually, by year-end exchange rate of manat fall. And it was a signal that people were ready. But then we saw that there was some excitement and change in low rate of manat, people rushed to the exchangers, steel mass purchasing dollars. At the same time, this situation took advantage of some speculators, dishonest people to make unreasonable. In this case, our foreign exchange reserves, foreign currency reserves of the Central Bank began to decrease. Simply call one number. Within a few days, each day purchased on the market of 500 million dollars. If that continues, then by the year-end foreign exchange reserves of the Central Bank could fall sharply. In this case, it was decided devaluation of the manat, in fact, AZN returned to previous levels. When there was a reform, 1 manat was equal to 1 US dollar, and now 1 manat is equal to about 1 US dollar ", - Aliyev said.

According to the President, all organizations have been given instructions to prevent unwarranted price increases.

"Monitor is being conducted and those who illegally raise prices will be severely punished. In recent years, all major food consumed in our country are produced in Azerbaijan. On this occasion, there can be no question of a rise in price of the product. Anyone who illegally raises prices will be severely punished by the state", President Ilham Aliyev said.

The president also said: "As a result of comprehensive measures, a process of economic development will continue in Azerbaijan. Azerbaijan's economy, as well as socio-political situation is stable. Equating the manat to the US dollar will make it possible to put more funds for social needs, there will not be any problems with the budget, and all the country infrastructure projects will be delivered on time."