Dollar may decline in Azerbaijan in early 2018 - FORECAST

Baku. 27 December. REPORT.AZ/ In the first quarter of 2018, the current demand for US-dollar will decline significantly and the exchange rate is expected to fall in Azerbaijan. Analytical Group of Report informs, although oil prices have risen to $ 67/barrel, the maximum of 2.5 years, growth in demand for US-dollar in Azerbaijan is due to the fact that financial institutions closed their open positions in currency in the end of the year and increased imports due to seasonal reasons.

Analytical Group believes, imports will decline in the first quarter of 2018 traditionally, as a result of which the demand for the dollar will decline considerably: "In the first quarter of 2017, when the global oil market stabilized at $ 60/barrel, US-dollar official exchange rate dropped to 1.65-1.67 AZN/USD, and the exchange rate in the cash foreign currency market is likely to fall further".

"However, it should be noted that in the third quarter of 2017, balance of payments of Azerbaijan has decreased by 88-fold in comparison with the previous quarter and made $ 11 million. This decrease will prevent the dollar's exchange rate from excessive cheapening.

Also, if the global oil market begins to rebound, then US-dollar rate may again rise to 1.70 AZN/USD and even higher. In case of any unexpected incidents in the global economy, economic growth can take place in 2018. This, in turn, will increase the demand for oil and keep prices high”, analysts said.