Pessimistic forecast on US dollar - rise in prices is expected


December 4, Fineko/abc.az. The State Oil Fund of Azerbaijan (SOFAZ), which sold foreign currency for $5.707 bn for the first 11 months of 2019, reduced sales by 1.3% compared with the 2018 same term, but since this month there has been an increase in demand for the US dollar.

ABC.AZ reports that the statement was made by expert economist Vugar Bayramov, the head of the Center for Economic & Social Development.

He noted that at some banks the rate of purchase of 1 dollar has grown up to 1.7020 manats for the first time in recent months.

Bayramov says that according to forecasts, in December the growth in demand for the US dollar was expected, in the current fiscal year the last month for public and private companies as well as banks on the obligations on external debt, import growth, the increase in foreign visits in connection with the holidays increases the demand for the dollar:

"Although the world market price of oil per barrel is no less than 60 dollars, it is still considered an acceptable level for oil countries. At the same time, volatility in the oil market also directly affects the foreign exchange earnings of oil countries. Demand for the US dollar is expected to continue growing in December. From next month the demand will stabilize again. And how the exchange rate of the manat will change will again depend directly on Central Bank’s position. But it is clear that for the stability of the manat exchange rate in the long-term prospect, it is necessary to increase the volume of currency entering the foreign exchange market from the nonoil sector," the expert emphasized.

By Elmir Murad