LONDON, March 7 (Reuters) - Azerbaijan is concerned about the possible impact from currency depreciations in neighbouring Russia and Kazakhstan but its strong macroeconomic fundamentals should support the currency, the country’s deputy central bank governor said on Friday.
“There’s no ground for (currency) depreciation in Azerbaijan. There’s no sign of capital outflows from Azerbaijan,” Khagani Abdullayev told a conference in London.
“We’re concerned about the possible impact of depreciations in Russia and Kazakhstan on imports, but it will be a temporary effect. In general terms, we don’t think it will have a big macroeconomic shock to the economy of Azerbaijan.”
Azerbaijan has a current account surplus thanks to its oil exports and has a $34 billion sovereign wealth fund.
Reporting by Natsuko Waki; editing by Carolyn Cohn