Middle East & Central Asia News
LAST UPDATE: July 23, 2025
IMF Urges Georgia’s Central Bank To Limit Discretionary Financial Transfers To The Gov’t
The IMF recommended amending Georgia’s central bank law to ensure a majority of non‑executive board members and explicitly prohibit discretionary financial transfers to the government, safeguarding central bank independence (gbc.ge).
Insight
The IMF’s guidance highlights the risk of political interference in monetary policy and underscores the importance of legal insulation for central bank credibility and financial stability.
Azerbaijan Central Bank cuts refinancing rate to 7%
Azerbaijan’s central bank lowered its key refinancing rate to 7% from 7.25% to support liquidity as macro conditions stabilize (MarketScreener).
Insight
The rate cut signals monetary easing aimed at stimulating economic activity, though it could increase inflation risks amid volatile oil revenues.
Azerbaijan’s central bank sees 2025 GDP growth at 3%
The central bank forecasted 3% GDP growth for 2025, based on oil priced at $68.6/barrel and gas at $299 per 1,000 m³ (TradingView, MarketScreener).
Insight
The outlook reflects strong reliance on hydrocarbon revenues, emphasizing the need for economic diversification to mitigate commodity exposure.
Tehran declares public holiday to tackle water shortage
Authorities declared July 23, 2025 a public holiday in Tehran to reduce water and electricity demand amid severe drought and heat, with reservoir levels critically low .
Insight
The decision reflects the severity of Iran’s resource crisis, signaling urgent need for long-term water management and climate adaptation reforms.
Somalia donors losing faith as Al-Shabaab surges
Al-Shabaab recaptured Moqokori on July 7 via suicide attack; international donors are increasingly doubting Somalia’s military capacity amid declining government effectiveness (Arab News, Arab News).
Insight
The surge demonstrates fragility of Somalia’s security apparatus and threatens future donor support unless urgent stabilization and governance reforms occur.
