The Word Bank recommended oil exporting countries to accelerate measures on economic diversification.
According to World Bank’s Global Economics Prospects, if the oil exporting countries, for instance Azerbaijan, Kazakhstan, Russia and Uzbekistan, don’t take measures on economic diversification, they might face problems due to weak economic growth.
The WB analysts say some oil exporting countries such as Azerbaijan, Angola, Bolivia, Kazakhstan, Malaysia, Nigeria, Russia, Sudan and Turkmenistan pursued active policy in 2016-2017 which supports exchange rate of national currency. Moreover, Azerbaijan, Angola, Columbia, Ghana, Kazakhstan, Nigeria, Russia and other countries hiked interested rate as a response to the high inflation.
On the background of decline in currency reserves, some countries, including Azerbaijan switched to quick exchange rate policy: ‘Moreover, Azerbaijan placed a part of its currency reserves in commercial banks’.
The report says that Azerbaijan, Kazakhstan, Russia, Ukraine and Uzbekistan provided financial support to problematic banks for economic stability.