Azerbaijan saves deposits in safety currency: minister

Currently, world financial and money markets are practically inactive. "This has worsened demand and 2009 activities will be negative. The liquidity problems must be removed in order to revive the world banking system," Sharifov said.

Crisis's roots are in the United States. Currently, the U.S. implements cheap credit policy. On the other hand, the U.S. budget expenditure and budget deficits have sharply increased.

"I think that the problem of the U.S. economy is premiums and deposits is low. Other countries, including Azerbaijan, save deposits in the State Oil Fund and National Bank. We have enough reserves and save our deposits in dollar, as oil and oil related products are main exported products in USD," Sharifov added.

Azerbaijan places securities in USD, and the United States uses them to cover budget deficits. According to Sharifov, in early 2000 the U.S. faced similar challenges.

Presently, the U.S. needs a lot of funds to extinguish fire at currency markets.

"I think that the U.S., being an issuer of main currency reserve, still remains main force, and therefore the American exchange retains the most safety status," the Minister said.

/Trend Capital/