Azernews.Az

The fall of US dollar against the Euro brings no benefits to Azerbaijan, a local analyst says.
"Oil accounts for most of the country`s exports, and since it is sold for dollars, this means a reduction in revenues," Ogtay Hagverdiyev told a local TV channel.
He said that if the dollar continues to weaken, exporting countries might start selling their oil for Euros or other currencies. For instance, neighboring Iran has already put forth the initiative. Member of the parliamentary commission on economic policy, Ali Masimli, said the low dollar rate against Europe`s single currency was causing hikes in crude prices, which results in high prices for goods imported to Azerbaijan. "Since our trade partners are mostly European countries, this brings about inflation rises."
Head of the Confederation of Azerbaijani Entrepreneurs (CAE), Alakbar Mammadov, confirmed that the rising Euro rate was driving up prices in the domestic market.
"Local businessmen have yet to overcome the psychological barrier, i.e. they still prefer trading in US dollar despite its weakening," he said.
At the same time, Mammadov said that in light of Azerbaijan`s expanding trade with Europe, local entrepreneurs conduct purchases and sales with these countries in Euros. "This will result in the dollar`s being displaced by the Euro in the future."
As for some projections about the dollar rate`s increase since 2009, experts are rather skeptical. This is possible only if the 27-member European Union collapses, they say.