US-dollar rate may drop to 1.60 AZN in Azerbaijan

Baku. 5 April. REPORT.AZ/ The average exchange rate of US dollar is expected to decrease to 1.60 AZN/USD.

Analytical Group of Report decreased exchange rate forecast from 1,65 AZN/USD to 1,60 AZN/USD.

The reasons for this are the relative improvement of the financial situation in Azerbaijan, adaptation of budget expenditures to current conditions, reduction in volume of money supply and expansion of the securities market.

"Until the end of May, US-dollar expected to fall to 1.65 AZN, and with the acceleration of the tourist season in June-July further to the level of 1.60 AZN", agency experts said.

Analytical group expects oil prices to reach 60 USD/barrel in 2 months. Depending on the oil price, exchange rate can drop to 1.55 AZN/USD.

"Until the recovery of Banking sector in Azerbaijan dollar rate will continue to fluctuate. Especially, when International Bank of Azerbaijan (IBA) significantly reduces the level of external debt exchange rate of the dollar can be completely stabilized. However, rapid lending and economic growth in 2004-2014 not expected to be restored in Azerbaijan, as well as all over the world”, analysts added.