The exchange rate of the euro against the dollar rose again.
Publika.az reports that Economist Vugar Bayramov, member of the Committee on Economic Policy, Industry and Entrepreneurship of the Milli Majlis said.
He said that the positive figures related to the Eurozone and especially the German economy strengthened the exchange rate of the euro.
“In Germany, indicators related to economic growth, employment and inflation are considered the best in the last 12 months. The producer price index (PPI) in the Eurozone also decreased by 0.5 percent compared to the month. On the other hand, the US economy is not able to fully achieve the quarterly targets. The Fed’s interest rate hikes are not yet enough to keep prices in the consumer market at optimal levels. On the contrary, there is a sharp increase in the credit market.”
V. Bayramov noted that efforts to reduce the share of the dollar in international trade are also intensifying:
“China and Brazil are intensifying negotiations on abandoning the dollar in mutual trade, and are taking real steps in the direction of reducing the share of US money in deals. For the first time in the history of Russia, the Chinese currency surpassed the dollar in the monthly trade turnover. This trend continued in March.”
According to the expert, the manat is losing value compared to the euro.
“According to the official exchange rate of the Central Bank, the manat has fallen by 4.0 percent compared to the euro in the last 1 month. In the last six months, the manat lost 10.0 percent of its value against the euro. The depreciation of our national currency compared to the European currency is due to changes in the exchange rate of the euro against the dollar. Thus, the direct exchange rate of the manat is determined relative to the dollar, and the cross exchange rate is determined relative to the euro. When the euro increases in value compared to the dollar, the manat also becomes cheaper compared to the European currency.
The member of parliament added that the strengthening of the euro can lead to an increase in the cost of goods imported from Europe in terms of manat: “Even though the price increases of these products have not been observed yet, if the euro continues to strengthen, European goods will become more expensive in the world market.”
Akkabai
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