World Bank: Devaluation of manat happened late

# 11:46
11 May 2017

A comprehensive strategy is needed for Azerbaijan’s economy, Hans Timmer, Chief Economist for the Europe and Central Asia (ECA) region of the World Bank, told a video conference held on Thursday, APA-Economics reported.

According to him, due to decreasing oil revenues, Azerbaijan has lost 25% of its purchasing power, which has caused a great shock for the national economy.

"Exchange flexibility must be ensured in Azerbaijan. That is to say, domestic prices should be aligned with foreign ones. If this does not happen at the expense of the exchange rate, it will be due to the correction of prices. Correction of the course in Azerbaijan was late. Therefore, there were many negative effects on the economy. The situation in the monetary policy of Azerbaijan has improved significantly. Along with this, it is important to ensure the recovery of the banking sector. Banks should be rehabilitated not at the expense of fiscal policy, but through restructuring," he said.