Assessing the impact of oil revenues and national savings on the exchange rate in Azerbaijan

The article discusses the theoretical and practical aspects of the formation of the real exchange rate. The factors influencing the exchange rate of the national currency, including the impact of oil prices in countries where the oil sector has a significant share in the national economy, are analyzed. The impact of the difference between national savings and domestic investment on the real exchange rate is assessed. It is shown that the main factor affecting the real exchange rate in Azerbaijan is the price of oil. Other factors that cumulatively limit the strengthening of the national currency are the increase in the cost of imports, as well as the difference between national savings and investments.

Keywords

exchange rate, oil revenues, national savings

Publication date

10.11.2022

Number of characters

26311

Cite

GOST	Ahmadov B. Assessing the impact of oil revenues and national savings on the exchange rate in Azerbaijan // Obshchestvo i ekonomika – 2022. – Issue 10 C. 83-98 [Electronic resource]. URL: https://oie.jes.su/S020736760022710-0-1 (circulation date: 30.04.2024). DOI: 10.31857/S020736760022710-0
MLA	Ahmadov, Baghish "Assessing the impact of oil revenues and national savings on the exchange rate in Azerbaijan." Obshchestvo i ekonomika 10 (2022):83-98. DOI: 10.31857/S020736760022710-0
APA	Ahmadov B. (2022). Assessing the impact of oil revenues and national savings on the exchange rate in Azerbaijan. Obshchestvo i ekonomika (10), pp.83-98 DOI: 10.31857/S020736760022710-0

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