12:17 - 13.09.2019

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September 13, Fineko/abc.az. Despite the fact that the decision of the European Central Bank to reduce deposit interest from 0.4% to 0.5% has not yet affected the currency market, this step has significantly reduced the possibility of strengthening the euro in the near future amid weakening pounds and the White House’s desire to depreciate dollar.

Expert economist Vugar Bayramov told Abc.az that since November this year the Central Bank intends to sell bonds in the amount of 20 billion euros per month.

“There was no information about how long the bond program would last. Interest on 'core refinancing operations' and 'margin financing' remained unchanged at 0 and 0.25%.

The European Central Bank made a relatively soft decision contrary to expectations, but so far does not relate to the strengthening of the euro in Frankfurt. While the economic growth is predicted in the eurozone has not been achieved, trade relations between the USA and China affect the monetary decisions of Europeans. In general, a recent decision by the European Central Bank shows that in the absence of predicted force majeure, the decisions by other leading competitors, in particular, the US Federal Reserve, the euro is not expected to strengthen against basket currencies in the near future. The exchange rate of the national currency against the dollar will be decisive in relation to European money, since the manat to the euro will be established. And this means that since the euro will not increase against the dollar, it is also not expected to strengthen in our currency market,” the expert noted.

Posted by Elmir Murad