Crisis in Turkey jeopardizes Azerbaijani economy

A sharp drop of the Turkish lira and the noticeable weakening of the Russian rouble at the background of expected new sanctions have affected the Azerbaijani manat and the Georgian lari. The economic crisis in Turkey has already caused serious losses for the oil sector of Azerbaijan and promises further negative consequences for the country's economy, says Ben Aris, the editor-in-chief of the Business News Europe.

The fall of the Turkish lira resumed in late August amid the news about the planned resignation of the deputy head of the country's National Bank.

Both Russia and Turkey play a significant role in the economies of South-Caucasian countries. The economic problems of these countries will have an impact on the economies of the region, Ben Aris points out, referring to analysts' data.

For Armenia, the economic crisis in Turkey does not matter, since economic contacts of these countries are minimal.

The crisis in Turkey will most significantly affect the economy of Azerbaijan, which remains highly dependent on exports of hydrocarbons.

The "Caucasian Knot" has reported that less than three years ago the economy of Azerbaijan had already experienced a crisis. In December 2015, prices went up, and commercial banks refused selling US dollars and euros.

In February 2018, Azerbaijani economists associated the decision to hold the presidential election ahead of schedule with expectation of a new economic crisis.