BAKU, Azerbaijan, April 15. The US dollar is surging again on the global market, with the euro losing approximately 3 percent in value versus it over the previous month, now requiring $1.062 to buy one euro, Vugar Bayramov, a member of the Milli Majlis (Parliament) Committee on Economic Policy, Industries, and Enterprising, wrote on his social network account, Trend reports.
According to the MP, the US dollar's strength is due to
investors increasingly investing in US dollars in the midst of
regional conflicts, as well as the US economy's perceived
rebound.
He mentioned that in March of this year, 303,000 extra jobs were
generated in the United States. The target inflation rate is close
to 2 percent. In addition, the US dollar is rising versus the
majority of other basket currencies.
"Can the dollar rise in price in Azerbaijan as well? The exchange rate of the manat against the dollar will depend on the state of the balance of payments and, more precisely, on the oil price, as noted in the Central Bank of Azerbaijan's statement on the main directions of monetary policy for 2024.
Although foreign exchange supply and demand in the fiscal sector, as well as exchange rate expectations of economic agents, are grouped as the main factors affecting equilibrium in the foreign exchange market, it is obvious that these indicators will also directly depend on the volatility in the energy market.
As observed, Azerbaijan's oil revenues, particularly the balance in the energy markets, will remain the primary factor influencing the manat exchange rate this year.
The CBA's statement on the need to intervene in the foreign exchange market to achieve operational objectives on exchange rate policy indicates that in cases of serious volatility in the energy market, foreign exchange reserves can be used. Even in 2024, the manat exchange rate will directly depend on the position of the Central Bank of Azerbaijan," Bayramov says in the publication.
Stay up-to-date with more news at Trend News Agency's WhatsApp channel