The strategic foreign exchange reserves to GDP in Azerbaijan is approaching 65 percent, a report on monetary policy of the Central Bank of Azerbaijan (CBA) following the first half-year, said on Wednesday.
Following January-June, strategic foreign exchange reserves have exceeded $44 billion, enough to cover imports of goods and services over three years.
"High growth rates of strategic foreign exchange reserves are a factor that reduces the sensitivity of the economy to external crisis influences and that form a strong macro-economic buffer," the report said.
Foreign exchange reserves of the Central Bank of Azerbaijan, during the reporting period rose by five percent and exceeded $ 11 billion.
"In the first half favorable external position of the country was preserved. With average price of Azerbaijani oil at $115 and a high demand for products and services of non-oil sector a great surplus was formed in foreign trade balance of the country," the report says.
According to the State Customs Committee, in January-June, the country's turnover amounted to $17.2 billion, of which $12.7 billion fell to exports, $4.5 billion - to imports. Trade balance surplus in the first half amounted to $8.2 billion.
Export of natural gas, tea, fruits, vegetables, imports of polyethylene, durable goods, fertilizers, automobiles is rapidly growing. One-third of imports are machinery and transport vehicles, its volume during the reporting period decreased by seven percent. At the same time reduction in import of some food products can be viewed as an extension of domestic production, the report said.
According to the report, in addition to export, the dynamics of remittances and capital flows from abroad had an enhancing effect on the foreign exchange earnings. According to preliminary data, the volume of remittances to the country amounted to $791 million.
According to State Statistics Committee, the volume of foreign investments in the country's economy grew in the first half by 5.2 percent to $ 1.7 billion.