Azernews.Az

By Nigar Orujova

Azerbaijan has recently faced with another fluctuation in the national currency that generated fuzz in the currency market, accompanied by the price alteration.

The country needs to create a Currency Council under the head of state, which will be responsible for exchange rate policy and the dynamics of price changes, PhD in economics, Professor Zahid Mammadov told Trend.

"The rate of the manat influences the activity of almost all structures in Azerbaijan, not only for those engaged in export and import,” he said. “This official body [Currency Council] should regularly make statements about the exchange rate in the country, justify the change of the rate, give advices and make suggestions in relation to where to store the currency, in which areas to invest and to allocate.”

This body can also participate in the evaluation of reserves of the State Oil Fund, he added.

The Currency Council should include representatives of the Ministries of Economy and Industry, Finance, Central Bank of Azerbaijan as well as entrepreneurs.

Indeed, Azerbaijani population that has experienced two devaluations in 2015 now want to convert its money in dollar, taking by storm banks and exchange offices. Earlier in January, Azerbaijan has closed non-bank exchange offices to reduce speculation of currency.

“In addition, speculators try to take advantage of any changes in the rate, and these negative aspects cause a sharp demand for the currency, its appreciation. Moreover, some entrepreneurs, using the moment, raise the price of their products,” he said, stressing that “these attempts taken to enrich at the expense of an artificial increase in prices should be stopped.”

Profitable area to develop

The expert also noted the sector that can increase budget revenues. Mammadov believes that the country could increase foreign exchange earnings through training of overseas students.

“We need to attract students from other countries, and Azerbaijan has all opportunities to do it. We can provide them with an opportunity to study in Russian, which is now in demand. Hundreds of people from the East and South-East Asia want to learn the Russian language and to study in Russia.

“We can provide the same conditions for a lower price that will attract these students. There are also many Turkish students who study in Russia; however, they might receive education in Russian in Azerbaijan. In addition, Azerbaijan can provide high quality education in the English language,” he explained.

The expert noted that the involvement of foreign students would stimulate not only the education sector, but also on the economy as a whole.

“We need to attract students from abroad, improve existing and creating new conditions for their training here. A person arriving in the country for training, creates conditions for the development of about 40 other areas, such as catering, accommodation, health care and many others,” stressed Mammadov.

Today, education of foreign students in Azerbaijan became one of prior directions of international relations of the Education Ministry.

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Nigar Orujova is AzerNews’ staff journalist. Follow her on Twitter: @o_nigar

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