Baku. 5 October. REPORT.AZ/ Decisions of US Federal Reserve System (Fed) regarding reduction of balance from October and increase of possible discount rates have no threat to Azerbaijani manat. Analytical Group of Report believes, steps taken by Fed will strengthen the U.S. dollar rate by a maximum of 4% in the global financial market. compared with the beginning of the year, dollar will continue to be 8-9% cheaper against euro, which is the main competitor: “In the first half of 2018 dollar is expected to depreciate again”.
The reason is, cheap dollar policy of the US government. US economy and inflation acceleration targeted by means of cheap dollar. Moreover, oil prices will be maintained at $ 55/barrel, with large hedge funds and official disclosures, which is expected to support inflation in the United States.
"For this reason, there is no threat to manat until the second half of 2018. However, since the second half of 2018, the US-dollar is likely to grow sharply as a result of excessive interest rates and significant difference in interest rates in other developed countries. This, in turn, will have a negative impact on the currencies of developing countries and will drastically reduce oil prices. Then the probability of the manat's devaluation will arise and the Analytical Group predicts that dollar's rate in Azerbaijan will reach 3 AZN/USD by 2020”, analysts said.