Russian experts: Forecast on dollar meltdown by 2024 too exaggerated

Baku. 18 October. REPORT.AZ/ The forecast that the dollar may crash by 40% against euro in the next six years is too exagerrated, the US currency may experience decline, but less significant, maximum to 20%, Report informs citing senior analyst at the Russian Institute of Energy and Finance Viktor Tatuzov.

Earlier Bloomberg published the forecast of Ulf Lindahl, chief executive officer of A.G. Bisset Associates LLC, who predicted that the dollar will plunge about 40% against the euro by 2024.

According to Tatuzov, dollar may plummet only if the US actively pursues such a policy. "Americans have a definite stimulus for devaluation of their currency. The weaker dollar is, the higher the competitiveness of the US goods is and the cheaper the labor force in the United States is," the expert notes.

He believes that it is currently impossible to make predictions now since the prospects of US economy for today are unclear. "In line with the international organizations, the US economy is developing successfully performing the role of a certain driving force for the world economy. By some experts, Trump's policy has a favorable impact on US economic growth. All the same stock indices are too high though they regularly collapse," Tatuzov said.

He noted that if the United States chooses the devaluation of their currency, they won's reach 40%: "I expect weakening of the rate but I don't think it will be 40% in six years. 5 up to 20% maximum in this period."

In his turn, head of the analytical department at Russian financial agency Alpari Alexander Razuvayev holds an opposite opinion. He believes that the sharp decrease in dollar against euro is highly unlikely in the next six years.

"I do not think that dollar will decline. We will likely achieve a parity between these two currencies against increase in Fed rate," Razuvayev noted.