Report: US-dollar growth in Turkey and Russia will also affect Azerbaijan

Baku. 9 October. REPORT.AZ/ The rise in US-dollar in Turkey and Russia will have a negative impact on Azerbaijani manat.

Analytical Group of Report News Agency informs, today, increase in US-dollar rate by over 4% that exceeded 3.70 TRY and negative forecasts of the Russian Ministry of Economic Development till the end of the year will increase pressure on US-dollar rate. So, if dollar not appreciates in Azerbaijan after the increase of US-dollar rate in these two countries, which are our main trade partners, then the real effective exchange rate of manat in Azerbaijan will begin to rise. This, in turn, will accelerate imports from these countries to Azerbaijan.

Notably, real effective exchange rate of manat is calculated from 2000. Its minimum limit was recorded at the end of 2004 (74.2 points), and the maximum limit was recorded on February 1, 2015 (153.1 points). From the start of the financial crisis, the minimum limit was 87 points as of September 1, 2016.

Analytical Group of Report News Agency believes, the range of 85-90 points is satisfactory. Significant deviation from this level is not considered acceptable in the current economic situation: “This can only be regulated by the rise in U.S. dollar rate in Azerbaijan. Despite all these statistics, the U.S. dollar rate is not expected to change dramatically until the end of this year. Dollar may continue to rise in price from 2018".