Strengthening of Manat Speculative - Samir Aliyev

The AZN strengthening has no fundamentals, according to a Board member of the Public Association Assistance to Economic Initiatives, Samir Aliyev.

On his profile in Facebook the expert noted that the strengthening of the manat is not long-term or sustainable.

“This process is speculative. Banks that have limited lending opportunities have found a new source of profit and loss by trying to eliminate the currency purchase and sale,” he said.

The expert pointed out that every time at the beginning of the year budget expenditures execution is at a low level. Due to the small amount of money aimed at the economy the shortage of AZN is felt. According to him, at the beginning of the year demand for the dollar is not high.

At the same time, S. Aliyev noted that the depreciation of the manat creates difficulties in the payment of some of the international obligations that have to be paid from the budget. As an example, he pointed to a part of the International Bank’s debt that has to be paid from the state budget.

The expert believes the Central Bank must prevent speculation around the manat.

“Strengthening of the manat is a temporary process. After some time the depreciation of the manat will start again,” he said.

It should be noted the manat appreciated by more than 9 kopecks from 1.92 manat per dollar on February 2 to AZN 1.8252 per USD on 8 February. ---71D