Azerbaijan's finance minister: Significant drop in euro rate not expected

"If the euro will decline, the probability is not excluded that the oil prices will drop, since there always has been a definite correlation between the euros and the price of oil, the Minister said. But, I do not think the rate will decline further because currently a lot of speculations are present in this regard, therefore, a significant reduction is not expected.

According to the minister, those measures that are taken by Europe to limit budget deficits, excessive borrowing, create overall financial discipline are taken by all countries, the "necessary stabilization will be achieved fast enough".

The reason for the fall of the euro was its rapid reduction in price on the world markets because of the unstable financial situation in Greece and some other Euro-zone countries. To address the situation in the countries of Southern Europe, the European finance ministers decided to establish a stabilization fund at 750 billion euros.

It will be formed of 60 billion euros, which will be collected by the European Commission, guarantees of the Euro-zone countries at 440 billion euros and 250 billion euros from the IMF. The member countries of the Euro-zone in need of support will receive loans under the anti-crisis 5%.

Since early 2010, the rate of euro has reduced by 12.55% in relevant to manat. Euro consistently ranked second on the currency market of Azerbaijan, even despite the significant volatility. Absolute historical minimum rate was fixed at 1.0142 manat in February 2009, and the absolute historical maximum - 1.3138 manat in December 2004.

Most of the monetary market is made up of the U.S. dollar, of which share was 84.3% of domestic monetary market. The dominant position of the dollar is due to the fact that more than 90% of exports of Azerbaijan is oil and oil products, the price of which on the world markets is determined in U.S. dollar.


/Trend/