Baku. 23 November. REPORT.AZ/ US-dollar exchange rate is not expected to grow significantly in 2018 in Azerbaijan. Analytical Group of Report News Agency informs, the reason is the fact that US-dollar rate in the global currency market remains low and oil prices are relatively high.
Thus, current low rate of US-dollar against major currencies will be maintained in 2018 and high oil prices will support economic growth in the United States, which would accelerate inflation in the US in the second quarter of next year. It is expected that the Federal Reserve System (Fed) will initiate a program to increase its discount rate and that all required actions will be taken by the US. Notably, in many cases, global financial and raw materials markets act at the request of large investment funds without relying on economic grounds. Most of these funds as is known are in the United States.
Analytical group predicts that the USD/EUR, which is the main currency pair will fluctuate in the range of 1.14-1.21 in 2018 and oil prices will be between $ 55-65 per barrel.
In Azerbaijan, not raising of US dollar rate will also be affected by domestic factors.Thus, the state financial discipline is expected to be maintained in 2018, and banks are expected to increase their lending. This, in turn, will prevent the increase in import demand. Also, the decline in real incomes of the population will limit demand for imports. Also, decline in real incomes of the population will limit the demand for imports. Thus, expected increase in customs duties, rise in utility tariffs and gasoline prices, and relatively stable wages will lead to the fall in real income of the population", analysts said.