the ongoing fluctuations in currency markets, the depreciation of the Turkish lira has sparked discussions about its ramifications for Azerbaijan's economy. Economist Rashad Hasanov provided insights into the effects of this depreciation in a statement to Ednews, shedding light on its implications for various sectors and population groups.

Hasanov highlighted the rise in electronic shopping between Azerbaijan and Turkey, noting its adverse effects on local entrepreneurs. He emphasized that while consumers may benefit from lower prices in the short term, the long-term consequences include inflation and limited opportunities. Moreover, the depreciation of the lira negatively impacts the competitiveness of Azerbaijani exports to the Turkish market, as costs are denominated in Azerbaijani manat.

The economist underscored the complexity of the situation, acknowledging both positive and negative effects on different segments of the economy. While some entrepreneurs may benefit from lower import costs in the short term, domestic producers face challenges in competing with imported goods due to higher production costs.

Furthermore, Hasanov highlighted the broader implications of lira depreciation, including its impact on the real effective exchange rate of the Azerbaijani manat. This, in turn, affects the pricing of Azerbaijani exports in international markets, potentially undermining their competitiveness.

As Azerbaijan navigates the effects of currency fluctuations, policymakers and stakeholders must carefully consider strategies to mitigate the negative impacts on domestic industries and promote sustainable economic growth. The insights provided by economists like Hasanov offer valuable perspectives in shaping effective policies to address these challenges.