"Report": USD rate will continue to decline in Azerbaijan

Baku. 14 February. REPORT.AZ/ Exchange rate of cash USD has risen in recent days at commercial banks.

Report informs, if last week dollar sold at 1.73 AZN, today banks sell cash dollar for 1.78 AZN in the best case. Notably, although today, February 14, dollar rate declined to the level of 1.7296 AZN in the foreign exchange auction by the Central Bank of Azerbaijan (CBA) in conjunction with the State Oil Fund of Azerbaijan (SOFAZ) exchange rate of the dollar has increased and the sale is restricted.

Analytical Group of Report believes, increase in US dollar cash caused by population who sold dollar assets at 1.85 AZN / USD rate last week and again converted those assets in manat: "This process expected to continue within a week and from the next week dollar will fall again in commercial banks. Banks also take advantage of US dollar's volatility. Banks deprived of income from main activities see way out in foreign exchange operations."

Report Analysts forecast official exchange rate at 1.65 AZN / USD in the near term, while the cash rate will decline to the level of 1.60 AZN/USD: "Higher oil prices, even increase to the level of 65 USD/barrel, decline in the real incomes of the population and manat supply are likely to decrease demand in dollar."