President Aliyev: Foreign exchange reserves in Azerbaijan almost six times higher than external public debt

Foreign exchange reserves in Azerbaijan are almost six times higher than the external public debt, President Ilham Aliyev said in an interview with Azerbaijan Television.

The head of state noted that this is a very rare occasion in the world, because the public debt of the absolute majority of countries is measured in numbers that are many times higher than their foreign exchange reserves.

“With us, everything is completely different. This shows that we can cut our external public debt down to zero at any time. There is simply no need for that at the moment, because there are long-term loans we took on good terms and we are repaying them on time. This indicates that we do not need anyone's help and are therefore capable of pursuing an independent policy in both political and economic spheres,” he said.

“I would like to voice another figure. It is related to exports. Exports have increased by 15 percent. This is also a very good indicator. Non-oil exports have increased by more than 27 percent. This is the tangible result of our plans, because we should earn currency not only from oil and gas, we should also earn it from the non-oil sector and bring it to the country. An increase of 27 percent is a large figure,” President Aliyev added.

The head of state pointed out that the positive balance of Azerbaijan’s foreign trade is $3.4 billion in the first six months alone.

“If it continues this way, then the surplus will amount to approximately $6-7 billion by the end of the year. In most countries of the world, the balance is negative. In other words, they import more than they export. Therefore, this affects the exchange rate and countries’ debts increase. The external debt of developed countries is 100 and sometimes even 120 percent of their gross domestic product. When it is at 50 percent, it is considered a positive phenomenon,” he said.

“In Azerbaijan, it is 19 percent and will be even lower, because I have ordered to keep reducing the debt every year,” the head of state concluded.


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