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Economic Indicators Comparison: Nigeria vs. Azerbaijan
| Indicator | Nigeria | Azerbaijan |
|---|---|---|
| Interest Rates (Lending) | 26.26% | 7.25% (Jul 2024) |
| Exchange Rates (Local Currency per USD) | ₦ (Nigerian Naira) 1,490 | AZN (Azerbaijani Manat) 1.70 (approx.) |
| Inflation Rate | 33.95% | 0.7% (Jun 2024) |
| Unemployment Rate | 5% | 5.6% (Dec 2023) |
| GDP Growth Rate | 2.85% | 2-3% (projected) |
| Savings Rate | 6.28% | No reliable data available |
Discussion:
- Interest Rates: Nigeria has significantly higher interest rates to address inflation.
- Exchange Rates: The Nigerian Naira is weaker compared to the Azerbaijani Manat against the USD.
- Inflation Rate: Nigeria experiences considerably higher inflation compared to Azerbaijan’s more stable rate.
- Unemployment Rate: Unemployment is a serious challenge in Nigeria, but Azerbaijan appears to have a lower rate.
- GDP Growth Rate: Both economies are projected to grow at similar modest rates.
- Savings Rate: Nigerians have a reported savings rate, while data for Azerbaijan is scarce.
Related Currency Pairings
Africans
Asians
The Evolution of the Azerbaijani Manat
The Azerbaijani Manat (AZN) has been the national currency of Azerbaijan since 2005. Its history reflects the country’s complex political and economic landscape, shaped by the Soviet era, independence, and economic reforms.
Early Years: Prior to the introduction of the Manat, Azerbaijan used the Soviet ruble. The Manat was introduced at a fixed exchange rate to the ruble, reflecting the country’s recent history as a Soviet republic.
Economic Challenges and Hyperinflation: Following the collapse of the Soviet Union, Azerbaijan faced significant economic challenges, including hyperinflation, political instability, and a lack of infrastructure. These factors put immense pressure on the Manat, leading to rapid devaluation and price increases.
Economic Reforms and Stabilization: In the early 1990s, Azerbaijan implemented a series of economic reforms, including privatization, liberalization, and fiscal consolidation. These measures aimed to stabilize the economy and reduce inflation. The government also introduced a currency board, pegging the Manat to the US dollar.
Currency Board and Pegging: The currency board helped to stabilize the Manat and attract foreign investment. However, the fixed exchange rate also limited the country’s ability to respond to economic shocks.
Recent Developments: In recent years, Azerbaijan has experienced economic growth, driven by its energy sector, particularly oil and gas. The Manat has remained relatively stable, reflecting the country’s economic resilience.
Specific Reforms and Policies:
- 2005: Introduction of the Manat, replacing the Azerbaijani ruble.
- 2006: Establishment of a currency board, pegging the Manat to the US dollar.
- 2015: Introduction of a flexible exchange rate regime.
- 2017: Implementation of a structural adjustment program with the International Monetary Fund (IMF).
- 2020: Response to the COVID-19 pandemic, including monetary policy measures to support the economy.
Sources:
World Bank
Central Bank of Nigeria
Trading Economics
Central Bank of