Expert: Objectively, the manat should be devalued

15:10 - 2.04.2020


April 2, Fineko/abc.az. Of course, objectively, the manat should be devalued today, since the country's foreign exchange earnings have already sharply decreased amid falling oil prices. It does not seem real that in the coming months the oil price will rise to the previous level, that is, to 56 dollars.

Expert Ekrem Hasanov told about that to news agency ABC.AZ, when commenting on the future fate of the manat.

Hasanov also noted that among the causes that increase the probability of manat cheapening, there is an increase in government spending related to coronavirus: "From this angle, of course, the manat should become cheaper. But whether the state will do this or not is the second question. The state has sufficient foreign exchange reserves - $50 billion.

As you know, substantial foreign exchange reserves of the State Oil Fund are also invested in real estate in some countries. And today, the price of real estate in the world has fallen, which means that the assets of the Oil Fund have fallen in price. And the size of these assets is equal to the State Budget of Azerbaijan for several years. In principle, the state can protect the exchange rate of the national currency by spending both current and foreign exchange reserves. The state did so in 2014-2015."

 

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