Dollar Will Rise in Price - Expert

The process of devaluation of the manat is to continue, says the economist Gubad Ibadoglu.

The expert on his profile on Facebook, referring to the processes related to the exchange rate of the national currency, noted that the factors causing the devaluation of the manat are activated.

According to him, factors affecting the depreciation of the manat will be active until the coming year.

As one of the reasons he called the closure of Bank Standard and the compensation paid to the bank’s depositors due to that. He recalled that the population's deposits in the bank amounted to 603 million manat, of which AZN 460 million is compensated.

"Compensation is issued in manat, even if the deposit is made in foreign currency. This level of cash is creating a new demand for currency in the market," he said.

As a second factor Ibadoglu said the following - SOCAR bonds in circulation have attracted part of the currency, with the result that the amount of dollars offered by private individuals in the market has decreased. This means that the offer of currency has also reduced.

"Thirdly, in the case of continuation of the policy to reduce oil dependence, it is expected to reduce the volume of intervention by the State Oil Fund in the currency market. This factor will also seriously affect the volume of currency supply in the market," he wrote.

Ibadoglu as other reasons for the rise in price of the dollar marked the beginning of payment of external obligations of companies and banks in connection with the end of the year, as well as the psychological pressure on the manat due to the expected decision of the US Federal Reserve and the rise in the interest rate.

Note that, since October 17, the rise in price of US currency again started in Azerbaijan and the dollar rose from 1.5970 manat to 1.6211.   -71D-