BAKU, Azerbaijan, July 20
By Fidan Babayeva - Trend:
The Azerbaijani bond market may offer a favorable environment to Russian investors, Chairman of the Board of Association of Stock Market Participants of Azerbaijan (AFBIA) Jeyhun Ibrahimov told Trend.
“Taking into account general economic laws, it is possible to predict what will happen in the capital markets during the period of stabilization of the Azerbaijani manat,” said Ibrahimov.
“The Russian ruble fell against major currencies. However, if our local currency is stable, the Azerbaijani bond market can provide a favorable environment for Russian investors,” he said.
The chairman emphasized that bonds ensure the stable interest rates, and at the end of the term, investors are paid interests equal to the amount of the bonds.
“This means that at the end of the term, the Russian investor will receive more profit in rubles. However, it should be taken into account that the fact that the fall in the currency in the countries of economic cooperation in comparison with other major currencies may lead to a decrease in the balance of payments of our economy,” Ibrahimov said.
The chairman stressed that in case of a stable rate of the Azerbaijani currency, the competitiveness of Azerbaijan's exporting products in one of these countries, for example, in Russia, decreases in price terms.
“This can lead to the fact that our products will be sold in these foreign markets in smaller quantities, and consequently, to a decrease in the export of local products,” he added.
The Association of Stock Market Participants of Azerbaijan was established on May 2, 2007.
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