Vusal Gasimli: There is less need to convert manats into dollars than in 2014

13.03.2020,12:16


March 13, Fineko/abc.az. Conversion of manat deposits into dollars on the one hand means the difference between the interests of deposits, and on the other hand, the loss of funds on average up to 10% due to transaction costs.

ABC.AZ reports that the above-mentioned statement was made by Vusal Gasimli, the executive director of the Center for Analysis of Economic Reforms & Communications.

He noted that, according to the theory of rational choice, the conversion of manat deposits into dollars is now more risky.

According to Gasimli, on the other hand, if in 2014 manat deposits exceeded $9 bn, at present this figure is equivalent to $5.1 bn: "The pressure of dollarization of manat deposits has also decreased several times compared with 2014. However, deposits in freely convertible currency reached AZN 10.6 bn this January that is by 2.6 times more against 2014. The increase in deposits in freely convertible currency is a factor of reduced pressure on the foreign exchange market. In general, in 2014, 81% of broad money supply was expressed in manats, and currently this indicator reaches 63%. In broad sense, the share of the manat in the money supply decreased by 29% in 2014-2020. This means that there is less need to convert manats into dollars now than in 2014."