Is devaluation expected in Azerbaijan?

22.09.2022,15:03


September 22, Fineko/abc.az. The U.S. Federal Reserve System raised the discount rate by 0.75%.

The refinancing rate reached 3-3.25%. This is a record figure for the last few years.

This is linked with the fact that the growth of the dollar has updated the 20-year low of foreign currencies such as the pound sterling and the euro.

The damage to the euro and the pound sterling from the ongoing economic process makes us think about the fate of our national currency, the manat.

Commenting on the incident, local experts said that there are no grounds for concern, the growth of the dollar will not affect the exchange rate of the manat.

ABC.AZ reports that economist-expert Rashad Hasanov in his statement to BAKU.WS stressed that Azerbaijan is an oil country, and oil prices on world markets are high, so what is happening will not have negative impact on our national currency:

"In fact, policy of fixed exchange rate against the US dollar is being followed with respect to the Azerbaijani manat. Today, the exchange rate of the manat is formed against the dollar. The ratio to other currencies is calculated by the cross-rate. Under the current conditions, there will be no change in the exchange rate of the manat to the dollar. Because it has more to do with indicators such as oil prices on the world market, the country's balance of payments, than with the discount rate. Therefore, the approach will not change. The stable policy will continue. In return, the manat will strengthen against foreign currencies, namely the euro, the Turkish lira, the ruble and the pound sterling."