(MENAFN- Trend News Agency) BAKU, Azerbaijan, April 15. The US dollar issurging again on the global market, with the euro losingapproximately 3 percent in value versus it over the previous month,now requiring $1.062 to buy one euro, Vugar Bayramov, a member ofthe 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 toinvestors increasingly investing in US dollars in the midst ofregional conflicts, as well as the US economy's perceivedrebound.
He mentioned that in March of this year, 303,000 extra jobs weregenerated in the United States. The target inflation rate is closeto 2 percent. In addition, the US dollar is rising versus themajority of other basket currencies.
"Can the dollar rise in price in Azerbaijan as well? Theexchange rate of the manat against the dollar will depend on thestate of the balance of payments and, more precisely, on the oilprice, as noted in the Central Bank of Azerbaijan's statement onthe main directions of monetary policy for 2024.
Although foreign exchange supply and demand in the fiscalsector, as well as exchange rate expectations of economic agents,are grouped as the main factors affecting equilibrium in theforeign exchange market, it is obvious that these indicators willalso directly depend on the volatility in the energy market.
As observed, Azerbaijan's oil revenues, particularly the balancein the energy markets, will remain the primary factor influencingthe manat exchange rate this year.
The CBA's statement on the need to intervene in the foreignexchange market to achieve operational objectives on exchange ratepolicy indicates that in cases of serious volatility in the energymarket, foreign exchange reserves can be used. Even in 2024, themanat exchange rate will directly depend on the position of theCentral Bank of Azerbaijan," Bayramov says in the publication.
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