Expert talks about impact of Turkish lira exchange rate on Azerbaijani economy


December 25, 2021 02:37 PM (UTC + 04: 00)

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By trend

The falling Turkish lira exchange rate impacts Azerbaijan’s economy mainly in two directions, Azerbaijani economic expert Ayyub Karimli said, Trend reports.

According to Karimli, the Central Bank of Turkey decided a few days ago to reduce the discount rate from 15% to 14%.

“The first direction involves influence on consumers, who receive certain benefits. Simultaneously with the fall in the exchange rate of the Turkish lira, the demand and interest in Turkish products increases as their prices fall,” he said. he noted.

The expert also said that the second direction involves the impact on the investment environment because Turkey is one of the main countries – trading partners of Azerbaijan. Since the start of 2021, commercial turnover between the two countries has amounted to nearly $ 5 billion. Azerbaijani enterprises have totally invested more than $ 20 billion in Turkey, and some of them are engaged in economic activities in this country.

“The fall in the Turkish lira exchange rate may slightly affect Azerbaijani companies that have invested in Turkey,” Karimli added.

According to the Central Bank of Azerbaijan, as of December 24, the exchange rate of the lira against the Azerbaijani manat was 1TL / 0.1475 AZN.

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