Azarbaijan

Azarbaijan is country of Europe located in far east Europe - caucasus.

Details

Official Name:Republic of Azerbaijan
Capital:Baku
Total area:86 600 km2
GDP per capita:$10,568
Native Language:Azarbaijani
Government:Dominant-party unitary presidential state
Population:9,356,500
Major Religion:Shia Islam
Monetary Unit:Manat (AZN)

Azerbaijan, officially the Republic of Azerbaijan is the largest country in the Caucasus region located at the crossroads of Western Asia and Eastern Europe. Known for its wealthy crude oil and natural gas reserves, Azerbaijan is bounded by the Caspian Sea to the east, Russia to the north, Georgia to the northwest, Armenia to the west, and Iran to the south. The exclave of Nakhchivan is bounded by Armenia to the north and east, Iran to the south and west, while having a short borderline with Turkey to the northwest.

Economy

After gaining independence in 1991, Azerbaijan became a member of the International Monetary Fund, the World Bank, the European Bank for Reconstruction and Development, the Islamic Development Bank and the Asian Development Bank. The banking system of Azerbaijan consists of the Central Bank of Azerbaijan, commercial banks and non-banking credit organizations. The National (now Central) Bank was created in 1992 based on the Azerbaijan State Savings Bank, an affiliate of the former State Savings Bank of the USSR. The Central Bank serves as Azerbaijan's central bank, empowered to issue the national currency, the Azerbaijani manat, and to supervise all commercial banks. Two major commercial banks are the state-owned International Bank of Azerbaijan, which is run by Dr. Jahangir Hajiyev, and the UniBank.

Pushed up by spending and demand growth, the 2007 Q1 inflation rate reached 16.6%. Nominal incomes and monthly wages climbed 29% and 25% respectively against this figure, but price increases in non-oil industry encouraged inflation in the country. Azerbaijan shows some signs of the so-called "Dutch disease" because of the fast growing energy sector, which causes inflation and makes non-energy exports more expensive.

In the early years of this century the chronically high inflation was brought under control and this led to the launch of a new currency, the new Azerbaijani manat, on January 1, 2006, to cement the acquisition of the economic reforms and erase the vestiges of an unstable economy.

Azerbaijan is also ranked 57th in the Global Competitiveness Report for 2010–2011, which is above other CIS countries.