15:30 - 13.07.2022

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July 13, Fineko/abc.az. MP Vugar Bayramov spoke about the US dollar and euro exchange rates. He noted that the transition of the US Federal Reserve System (FRS) to a sharp increase in the discount rate also does not affect the exchange rate of other basket currencies, including the euro, to the dollar. 

ABC.AZ reports that the MP noted that last month the Fed raised the rate by 75 basis points, bringing it to the range of 1.50-1.75 percent. 
"This was the highest growth since 1994. It is possible that in July the discount rate in the United States will be raised again. According to experts, the discount rate will be increased by another 1.75 basis points to 3.4 percent by the end of the year.

Inflation rate in eurozone is quite high

Vugar Bayramov: Euro has lost 18% of its value this year

While the Fed is targeting 2 percent inflation this year, the 12-month price growth rate is approaching 7.0 percent. This is the highest inflation rate in the United States in the last 40 years. On the other hand, US GDP growth was 2.8 percent against the forecast of 1.7%. All this forced the Fed to go for a sharp increase in rates. As a result, there is a sharp strengthening of the dollar," Bayramov said.