The document emphasizes that one of the main factors of resistance to external shocks is the foreign exchange reserves of the state, and the other is disciplined borrowing.
“In order to maintain a stable level of foreign exchange reserves, the share of transfers from the State Oil Fund of Azerbaijan (SOFAZ) to the state budget should be gradually reduced. Aggregate debt should serve macroeconomic stability, including government budget stability. Domestic debt management should support the development of financial markets in the country and a stable level of external debt, strengthen control over-borrowing by state-owned companies, and on this basis, government and quasi-public debt management should be organized,” the order reads.
“It is necessary to ensure low and stable prices, which is the main criterion for macroeconomic stability. Such stability should improve expectations in the economy, protect savings from depreciation, and increase investment. Price stability must be ensured through more efficient link. Sustainable financial stability, which is another important criterion for macroeconomic stability, must lead to efficient financial markets, increased financial depth, and increased access to finance,” reads the presidential order.
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