Azerbaijan, Baku, 21 January / Trend corr. I.KHalilova / The recent increase of integration of the domestic and foreign markets of Azerbaijan strengthening of US dollar to leading world currencies affected the AZN rate compared to the US dollar, Farhad Amirbayov, the manager of the Baku Inter-bank Currency Stock (BICS), stated. This is due to the devaluation of exchange commodities such as oil, gold, as well as reduction of stock indexes.
Amirbayov did not forecast far ahead, as a new trend is observed at the beginning of the year or correction at the stock markets as a result of which AZN stabilized compared to the US dollar. Today, the exchange rate totals AZN/USD 0, 8445.
Amirabayov considers the necessary development and other currency instruments at the domestic market of the country, where the monopoly has been kept on the US dollar. Taking into consideration that Russia and European countries are the main foreign partners of Azerbaijan, it will be more expedient to hold operations with currencies in these countries in order to avoid expenses which may occur through pay off American currency.
Currently, a rise in currency operations has been observed with the American currency. In 2007 the volume of exchange currency market of Azerbaijan totalled $118mln and reached $164mln from the beginning of this year.
The Azerbaijani Government expected a 5% strengthening of the national currency as compared to USD to AZN 0.81. This forecast was included in the macroeconomic forecast for 2008.
On the one side, the strengthening of the AZN is a factor which controls inflation and on the other, serious developments like the devolution of the USD as compared to leading world currencies have occurred in 2007.
The Government expects most of the volume of oil dollars which was invested in revenues of the consolidated budget. The huge investments expected into the Azerbaijani economy are from abroad.
The United States Federal Reserve System and European Central Bank will reduce interest rates which will be a support against further drops.