Expert: 'New mechanisms on repayment of loans in USD should be prepared'

Baku. 21 December. REPORT.AZ/ 'Indexation of wages is necessary in order to reduce negative effect of fall in the exchange rate of Azerbaijani manat.'

Report was told by economic expert Vugar Bayramov, commenting on decision of Central Bank of Azerbaijan (CBAR) regarding transition to floating exchange rate from December 21.

According to him, there is serious need in minimization social impact of decline of the exchange rate: 'From this viewpoint, indexation of both wage and deposit is necessary. Works should be carried out for elimination of negative impacts.'

'There is need for new mechanisms on repayment of USD loans', Expert said: 'Because problems are predicted in repayment of USD loans.'

Next change of exchange rate of manat will directly depend on oil price. If oil price decreases, exchange rate of manat will decline, too, economic expert said. 

According to him, process of decline of exchange rate of manat will change depending on country's balance of payments.