Baku. 21 December. REPORT.AZ/ New tax policy of US president Donald Trump can increase US dollar by 15% in world.
Report informs citing the Vestifinance.ru, German Deutsche Bank's report says.
According to bank analysts, changes in taxation will lead to increase in import duties to the level of corporate taxes and cancellation of export duties.As a result, US trade relations with other countries will change. In this scenario dollar will strengthen dramatically.
Analysts believe, import prices will increase by 20%, in turn, will lead to the 5% inflation in the US.
Changes in taxation policies, will cut trade deficit by 2% in US. Improvement in the trade balance and increase in competitiveness will be accompanied by the strengthening of the dollar. Price changes that will occur as a result of new taxes, could be offset by the strengthening of the US dollar by 15%. Of course, changes in monetary policy of US Federal Reserve System (FRS) and international trade relations will further strengthen the dollar.
In case of changes in US tax policy, euro exchange rate may decrease to the level of 0.85 USD/EUR.