15:12 - 9.08.2023

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The national currencies of Russia and Türkiye are losing ground against the dollar, with $1 bought for 97 rubles in Russia. Over the past month, the ruble has lost 8% in value. The Turkish lira is also approaching a new psychological threshold, with 1 dollar exchanged for 27 lira. Despite Ankara's new economic policy, it is impossible to avoid the depreciation of the national currency. In fact, the impossibility of achieving this in the short term was known in advance, economic expert Vugar Bayramov said.

ABC.AZ quotes Bayramov as saying the pressure on both currencies persists. In Turkiye, the exchange rate will stabilize only in the medium term. And the sanctions put pressure on the ruble. In this regard, grim forecasts regarding the Russian economy also affected the currency market. These countries are the main trading partners of Azerbaijan. Russia is the largest importer of Azerbaijan and the main partner in non-oil exports. Turkiye is Azerbaijan's second largest partner in overall trade and in non-oil exports.

"Regarding the impact of what is happening in the foreign exchange markets of neighboring countries on the manat rate, we should remember that the main economic factors in determining the rate are the volume of currency entering the country and the amount of currency put up for auction by the State Oil Fund. But for our foreign partners, the exchange rates of national currencies are actually one of the economic factors.

The depreciation of national currencies in our main trading partners strengthens the nominal effective rate of the manat. And this cannot but affect non-oil exports. The exchange rate mode has not yet been introduced in Azerbaijan. The Central Bank retains the possibility of direct intervention in the process. Therefore, the way the manat exchange rate changes this year will  depend directly on the position of the Central Bank of Azerbaijan,” the expert noted.