15:40 - 24.04.2024
April 24, Fineko/abc.az. Azerbaijan's strong external balance, supported by a low debt level (21.8% by the end of 2023), and commitment to more cautious fiscal position to manage windfalls caused by high oil prices, led to confirmation of country's credit rating from 2022 with "Positive" outlook, ABC.AZ informs, referring to Fitch Ratings’ report.
However, the rating agency believes that weaknesses such as weak monetary policy, dependence on hydrocarbon revenues and low economic growth remain. Monetary policy continues to be limited due to high liquidity, an underdeveloped local market and high financial dollarization.
Fitch noted that some progress has been made through the introduction of new Central Bank instruments and efforts to reduce financial dollarization related to the increased impact of the discount rate on the market, but the main lever for managing risks associated with oil revenue volatility is fiscal policy.
