Abstract
The exchange rate has a direct impact on the economy of the Republic of Azerbaijan. Exchange rate changes depend on market conditions. Therefore, the exchange rate is affected by the state of the balance of payments, the extent of currency use in international payments, speculative currency transactions and the activity of currency markets, inflation and many other factors. The article shows the possible consequences of their influence on the exchange rate and gives examples. Dependence on the growth of money supply, monetary base and inflation is clearly manifested in the country. An analysis of the economic aspects directly affected by the exchange rate, namely foreign trade, capital flows, interest rates, business development, purchasing power of the population and economic growth is carried out. Currency stabilization measures, including stabilization of banks' currency positions, increasing control over the purposeful use of previously granted loans, distinguishing speculative operations from others, emphasize the importance of this topic. The implementation of these measures will have a positive effect on the stabilization of the exchange rate and the economic situation of the country in general..
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.