Category: Azer News

The United States-led Board of Peace will unveil a recovery plan for the Gaza Strip on Wednesday, Axios reported after obtaining a copy of the document.

The plan allegedly includes 66 infrastructure and security projects worth a total of $2.5 billion, although only part of the funds has been secured so far.

According to the report, the infrastructure projects include the removal of rubble, road and hospital repairs, temporary housing, as well as small business grants and a Gaza investment fund.

Security projects are set to include a site to house the peacekeeping International Stabilization Force, a Hamas weapon buyback program and support for the Palestinian police. However, the report stressed that the plan will depend on Hamas and Israel’s political will.

The Board of Peace, launched by U.S. President Donald Trump, has 26 founding member countries, chaired by the United States.

The founding member countries and their respective leaders include Albania, Argentina, Armenia, Azerbaijan, Bahrain, Belarus, Bulgaria, Cambodia, Egypt, El Salvador, Hungary, Indonesia, Israel, Jordan, Kazakhstan, Kosovo, Kuwait, Mongolia, Morocco, Pakistan, Paraguay, Qatar, Saudi Arabia, Trkiye, United Arab Emirates, United States, Uzbekistan, and Vietnam. For the complete list of specific leaders corresponding to each nation, please refer to the referenced document.

The Central Bank of Azerbaijan announced its latest decision on the refinancing rate today, and the main direction of the decision coincided with the forecast we published in Azernews on September 17. More precisely, the Central Bank did not cut the refinancing rate, but lowered the lower bound of the interest rate corridor from 5.5% to 5%. The refinancing rate was kept at 6.5%, while the upper bound of the corridor remained at 7.5%.

At first glance, this is not an interest rate cut, and it would not be correct to present it as such. However, the substance of the decision is not limited to the fact that the 6.5% refinancing rate remained unchanged. In fact, by reducing the lower bound of the interest rate corridor by 50 basis points, the Central Bank has created somewhat greater room for softer monetary conditions to emerge in the money market.

The key issue here, however, is the environment in which the decision was made. According to the Central Bank’s statement, structural liquidity surplus in the banking sector reached AZN 6.3 billion at the end of August. This figure is 2.2 times higher than at the end of 2025. At the same time, interest rates on key indicators in the unsecured money market have also moved downward: the average daily AZIR stood at 6.39% in July, 6.28% in August, and 6.02% in the period elapsed in September.

This means that one of the main challenges currently facing the Central Bank is not the high cost of money, but ensuring that the high liquidity that has emerged in the banking system is transmitted to the market more effectively. The reduction of the lower bound is justified precisely by this objective. The Central Bank says that widening the corridor should reduce its participation in the money market and create conditions for banks to conduct more active operations with each other.

It is interesting to look at which part of the forecast we put forward on September 17 has materialized. The main idea of that forecast was that the Central Bank would maintain a ‘wait-and-see’ position through the end of 2026 or could cautiously move toward easing in order to support economic activity. Today’s decision stands between these two approaches: the refinancing rate was left unchanged, but the lower part of the interest rate corridor was reduced.

In other words, the Central Bank has not yet entered a conventional interest rate-cutting phase. However, today’s decision shows that some room for such a step in the future has been created.

Inflation will be the key condition for this.

Annual inflation in Azerbaijan stood at 5.7% in August. This was 0.1 percentage point lower than in July and remained within the Central Bank’s target range of 4% ±2 percentage points. Core inflation was 5.1%. The Central Bank has maintained its forecast that inflation will remain within the target range over the medium term.

These figures provide the Central Bank with some room for maneuver. Inflation is no longer above the upper limit of the target range. On the other hand, a rate of 5.7% still does not mean a low-inflation environment. Therefore, reducing the lower bound of the interest rate corridor instead of immediately cutting the refinancing rate can be viewed as a more cautious step.

Another important factor is the manat market. According to the Central Bank, during the first eight months of 2026, supply in the foreign exchange market significantly exceeded demand. During the same period, the Central Bank’s foreign exchange reserves increased by 32.9% to $15.3 billion. Meanwhile, a positive balance of $10.4 billion was recorded in foreign trade in January-August.

This picture is important from the perspective of monetary policy. One of the main risks the Central Bank takes into account when lowering interest rates is the emergence of pressure on the foreign exchange market. The current figures, at least, indicate that there is no significant pressure in this direction.

Therefore, it would not be correct to sum up today’s decision simply by saying that ‘the interest rate remained unchanged.’ In fact, while keeping the main policy rate at 6.5% in order to preserve inflation expectations, the Central Bank reduced the lower bound of the interest rate corridor to 5% amid high liquidity in the banking system. This is a rather cautious monetary signal.

The main question now is this: could the refinancing rate itself also be lowered following today’s ecision?

The answer is not ‘yes’ or ‘no’ for now. But today’s decision contains elements that make future interest rate cuts a more realistic scenario than before. If inflation continues to move downward, stability in the foreign exchange market is maintained, external-sector indicators remain positive, and no additional inflationary pressure emerges from domestic demand, the grounds for the Central Bank to reconsider the 6.5% refinancing rate could strengthen.

Conversely, if energy and food prices experience a new surge, global inflationary pressure intensifies, and this is transmitted to domestic prices from Azerbaijan’s major trading partners, today’s decision cannot be viewed as a guarantee of a future rate cut. The Central Bank itself says that these risks remain relevant.

There is another interesting detail here. The date for announcing the next interest rate decision has been moved from November 4 to October 29. This date will cause the market to focus more quickly on the Central Bank’s next move.

Thus, in my view, the main message of the September 23 decision is broader than the fact that the refinancing rate remained unchanged. The Central Bank has not yet lowered interest rates. However, the 50-basis-point adjustment to the lower bound shows that room for maneuver in monetary policy has expanded somewhat compared with before.

The main thesis of the September 17 forecast is confirmed precisely here: rather than joining the global monetary easing race, the Central Bank is currently acting cautiously, preserving domestic macroeconomic stability while moving carefully. Today’s decision, meanwhile, can be read as one of the first small steps in that cautiousness toward easing.

However, the main decision is still ahead. For the first step below 6.5% to be taken, the biggest argument before the Central Bank will once again be inflation.

On September 23, President of the Republic of Azerbaijan Ilham Aliyev received Tiina Nirk, the newly appointed Extraordinary and Plenipotentiary Ambassador of the Republic of Estonia to Azerbaijan.

The ambassador presented her credentials to the head of state.

President Ilham Aliyev then held a conversation with the ambassador.

The head of state stressed the importance of reciprocal visits and contacts at various levels in expanding cooperation between Azerbaijan and Estonia.

Welcoming the development of Azerbaijan-European Union relations, President Ilham Aliyev highlighted this year’s visits to Azerbaijan by President of the European Council António Costa, President of the European Commission Ursula von der Leyen, and Kaja Kallas, EU High Representative for Foreign Affairs and Security Policy and Vice-President of the European Commission.

Tiina Nirk, who said she was honored to have been appointed Estonia’s first ambassador to Azerbaijan, emphasized that she would spare no effort to further develop relations between the two countries, as well as between Azerbaijan and the European Union.

Noting Azerbaijan’s important position along the Middle Corridor, the ambassador pointed to the strong potential for expanding partnership in many areas, including political dialogue, business, information technology, logistics, and other fields.

Tiina Nirk also highlighted broad opportunities for cooperation in education, noting that around 200 Azerbaijani students are currently studying in Estonia.

The ambassador also commended Azerbaijan’s humanitarian assistance to Ukraine.

During the meeting, it was underlined that the opening of the Embassy of Estonia in Azerbaijan would make an important contribution to further developing bilateral relations. The sides also addressed the activities of the Intergovernmental Commission on Economic and Trade Cooperation and discussed issues of mutual interest.

An event dedicated to the 80th anniversary of Gulnaz Abdullazade, Vice-Rector for Scientific Research and Creative Activities at the Baku Music Academy, composer, musicologist, philosopher, Doctor of Philosophy and professor, has been held at the Azerbaijan National Library.

National Library Director Professor Karim Tahirov spoke about the prominent scholar’s extensive academic, pedagogical and creative work, as well as her contributions to the development of Azerbaijani musicology and the history of philosophical thought. He emphasized the particular importance of Abdullazade’s diverse scholarly work, fundamental research and the students she has trained over the years for Azerbaijani science and culture.

Representatives of the Baku Music Academy, as well as Gulnaz Abdullazade’s students and colleagues, including Zumrud Mammadova, Rauf Bahmanli, Ilahe Gismet, Arif Asadullayev, Konul Nasirova, Zeynal Isayev, Imina Aliyeva, Narmina Agasi, Adila Afandi, Nargiz Huseynova, Nurida Ismayilzade and Maya Gafarova, delivered speeches at the event.

The speakers highlighted Abdullazade’s multifaceted academic and creative activities and her research in musicology, philosophy and aesthetics. They noted that her scholarly works and monographs have played an important role in the development of Azerbaijani music science.

It was also noted that Professor Gulnaz Abdullazade’s years of research, pedagogical work and the students she has trained represent a significant contribution to the development of Azerbaijani music science and the country’s musical culture as a whole.

At the end of the event, Gulnaz Abdullazade expressed her gratitude for the attention and recognition shown to her.

The participants then viewed an exhibition featuring more than 100 publications dedicated to Gulnaz Abdullazade’s life and creative work.

Azerbaijan’s Deputy Economy Minister Anar Akhundov has met with Czech Deputy Foreign Minister Marie Chatardova during her visit to Azerbaijan.

The meeting focused on the current state of economic ties between the two countries and ways to expand cooperation in new areas.

The parties highlighted significant potential for collaboration in areas including energy, transport, pharmaceuticals, technology transfer and other sectors.

They also exchanged views on preparations for the next meeting of the Azerbaijan-Czech Joint Commission.

The officials discussed promoting mutual investments, strengthening ties between business communities and implementing joint projects.

McLaren driver Oscar Piastri said at a press conference in Baku ahead of the 2026 Azerbaijan Grand Prix that he is looking forward to racing at the Baku City Circuit and believes the track offers a unique challenge.

Piastri noted that the circuit requires confidence from drivers and combines a large number of corners with the characteristics of a street track. He added that racing in Baku is always exciting and expressed hope that this year’s weekend would be more successful for McLaren.

The Australian driver also spoke about the team’s performance at the previous race weekend. He said McLaren had sufficient pace but was not always able to show its full potential. Piastri added that the team has been making progress and testing several upgrades, some of which have worked while others have not produced the expected results.

He stressed that McLaren will continue working on the car and does not intend to stop developing it as the season progresses.

The 2026 Azerbaijan Grand Prix will be held at the Baku City Circuit from September 24 to 26. The weekend will feature Free Practice 1 and 2 on Thursday, followed by Free Practice 3 and qualifying on Friday, while the 51-lap Grand Prix will take place on Saturday at 15:00 local time.

Formula 1 returns to Baku this week as the 2026 Azerbaijan Grand Prix gets underway on the city’s famous street circuit.

The race, the 15th round of the 2026 Formula 1 World Championship, will run from September 24 to 26. The Grand Prix will be held on Saturday this year, with the schedule changed because September 27 is Azerbaijan’s Remembrance Day.

Free practice will take place on Thursday, followed by final practice and qualifying on Friday. The 51-lap race will be held on Saturday.

Kimi Antonelli arrives in Baku at the top of the drivers’ championship. The Mercedes driver has 81 points more than his teammate George Russell, while Lewis Hamilton is third. Reigning world champion Lando Norris is also among the leading drivers.

Antonelli won the Spanish Grand Prix in Madrid, taking his eighth win of the season. Mercedes have won 10 of the 14 races so far and lead the constructors’ standings.

Norris will be looking to respond after finishing behind Antonelli in Madrid despite starting from pole position. McLaren will face the usual Baku setup challenge, with the cars needing good speed on the long straights while also performing well through the slower corners.

The Baku City Circuit is 6.003 kilometers long and has 20 corners. It passes through the streets of the capital and includes the narrow section around Icherisheher before reaching the long straight along the Baku waterfront.

The track is known for its long straights and heavy braking zones. Teams have to decide how much downforce to run, as more downforce can help in the corners but can also reduce speed on the straights.

Baku has hosted Formula 1 since 2016, when the race was held as the European Grand Prix. It became the Azerbaijan Grand Prix the following year.

The first Azerbaijan Grand Prix was won by Daniel Ricciardo in 2017. Lewis Hamilton won in 2018, followed by Valtteri Bottas in 2019. Sergio Perez won in 2021 and 2023, Max Verstappen took victory in 2022 and 2025, while Oscar Piastri won in 2024.

Seven different drivers have won the nine Azerbaijan Grands Prix held so far.

Charles Leclerc has taken pole position four times in Baku but has not yet won the race.

The 2026 Azerbaijan Grand Prix will also be the first race of a triple-header, followed by the Malaysian and Singapore Grands Prix.

The teams now head into another weekend on one of Formula 1’s most distinctive circuits, with qualifying, strategy and the narrow streets of Baku likely to play an important part in the outcome.

Ukrainian President Volodymyr Zelensky could travel to Moscow if he is interested in holding talks on a peaceful settlement of the conflict in Ukraine.

According to TASS, Russian presidential spokesman Dmitry Peskov made the remarks.

‘As for a meeting between Russian President Vladimir Putin and Zelensky, our position is well known to everyone. Putin has said that if Zelensky wishes, he can come to Moscow,’ Peskov said.

According to Peskov, Russia is ready to provide security guarantees to the Ukrainian leader during his visit to Russia. He also recalled that Zelensky knows what decisions need to be made to resolve the conflict in Ukraine.

The Kremlin spokesman also said that Russia continues to maintain an open position toward peace talks, despite what he described as ‘terrorist activities that prevent the initial conditions for the launch of peace negotiations’ by Kyiv.

A commercial vessel was attacked in the Strait of Hormuz, causing a fire to break out on board.

According to the United Kingdom Maritime Trade Operations (UKMTO), an unidentified projectile struck the vessel, sparking a fire. The crew members were evacuated, with two of them reportedly injured.

The name of the vessel, its flag, port of registration and the exact coordinates of the incident have not been disclosed.

Authorities are investigating, and there are no reports of any environmental impact, the monitor says.

The Strait of Hormuz is a narrow maritime passage between the Persian Gulf and the Gulf of Oman, holding significant strategic importance as approximately 20% of global oil supplies and around 25% of liquefied natural gas (LNG) exports pass through it. Essentially, it serves as an energy artery for countries in Asia, Europe, and even the United States.

The strait separates Iran from Oman, and in some areas, the width of the shipping channel is only two miles on each side. Given its critical role in global energy supply chains, ensuring the safety and security of this vital waterway is paramount for international trade and economic stability.

President of the Republic of Azerbaijan Ilham Aliyev has sent a congratulatory letter to Salman bin Abdulaziz Al Saud, Custodian of the Two Holy Mosques, King of Saudi Arabia.

“My Dear Brother,

On my own behalf and on behalf of the people of Azerbaijan, I extend my most sincere congratulations and best wishes to you and, through you, to all your people on the occasion of September 23 – the Proclamation of the Kingdom.

We are delighted by the upward trajectory and dynamic development of Azerbaijan-Saudi Arabia intergovernmental relations and cooperation, which are built on shared moral values, religious and cultural roots, traditional friendship, and brotherhood.

We attach great importance to the comprehensive development of our relations based on mutual trust and support. Today, our cooperation across a number of fields serves the interests of our countries and the well-being of our peoples, bringing them even closer together. Our partnership with ACWA Power, your country’s leading company in the priority areas of energy, including alternative and renewable energy, is expanding year by year and gaining new substance.

I would particularly like to emphasize our fruitful cooperation and mutual support within international organizations, especially the Organization of Islamic Cooperation. Of course, active political dialogue at the highest level has created a favorable foundation for all of this.

I am confident that the brotherly relations and interaction between our peoples will further deepen in the coming years through our joint efforts for the prosperity of our countries, and that our partnership will be enriched with new achievements.

On this festive day, I wish you robust health, long life, and success in your high office, and the brotherly people of Saudi Arabia lasting peace and prosperity.”