Azernews.Az

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) for January to June 2012, said on Wednesday.

Strategic foreign exchange reserves have exceeded $44 billion in this period, which is quite enough to cover imports of goods and services over three years.

"High growth rate of strategic foreign exchange reserves represent a factor, that reduces the sensitivity of the economy to external crisis influences and forms a strong macro-economic buffer," the report noted.

Foreign exchange reserves of the Central Bank of Azerbaijan rose by five percent to over $11 billion in this period.

"Azerbaijan could preserve its favorable external position over the first half of 2012. Average price of Azerbaijani oil at $115 and a high demand for products and services of non-oil sector have formed a great surplus in the country's foreign trade balance," the report says.

According to the State Customs Committee, the country's goods turnover amounted to $17.2 billion, with $12.7 billion in exports and $4.5 billion in imports in January to June. Trade balance surplus was $8.2 billion in this period.

Export of natural gas, tea, fruits, vegetables, imports of polyethylene, durable goods, fertilizers, automobiles is rapidly growing. Machinery and transport vehicles constituted one-third of imports, a drop by 7 percent. At the same time, cut in imports of some food products resulted from increase of domestic production, the report said.

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.

The State Statistics Committee reported that the volume of foreign investments in the country's economy grew by 5.2 percent to $ 1.7 billion over the first six months of 2012.