BAKU, Azerbaijan, April 14. The impact of developments in the Middle East on Azerbaijan’s inflation outlook remains uncertain, said Shahin Mahmudzade, Director General of the Central Bank of Azerbaijan (CBA), during a press conference on the Financial Stability Report, Trend reports.
According to him, assessing the inflationary impact on Azerbaijan requires consideration of multiple factors. Rising oil prices can boost the country’s export revenues, foreign exchange reserves, and strengthen the balance of payments.
“On the other hand, higher oil prices may lead to increased inflation in partner countries, which could affect Azerbaijan through imported inflation. Most of the country’s key partners are oil-importing states, and this situation leads to the depreciation of their currencies. As a result, on one hand, exchange rates weaken, and on the other hand, inflation rises,” he noted.