site.btaFinancial Analyst Advises People Having Savings in US Dollars to Keep Them

Financial Analyst Advises People Having Savings in US Dollars to Keep Them


Sofia, January 8 (BTA) - Financial analyst Dimo Dimov expects
that a long spell of an expensive US dollar is ahead, noting
that there is nothing distressing or alarming about it. In a BTA
 interview Dimov says that the dollar will increase further, to
even becoming equal to the euro.

The euro currently sells at USD 1.1830, which is the lowest
level of the common European currency since 2006. The dive of
the euro is very considerable, given that in May 2014 the
euro/dollar exchange rate was USD 1.40/EUR 1.00, i.e., the drop
is by about 22 cents which according to Dimov is a huge
fluctuation for the forex markets.

Dimov said that currency fluctuations are as a rule cyclical.
The analyst spoke about a consolidation, or a fluctuation of the
 exchange rate in very broad ranges, from 1.64 to 1.22, since
2008.

The impact of the expensive dollar on the Bulgarian economy will
 not be big as Bulgaria mainly exports to the Eurozone, Dimov
said. An impact would rather be felt on resources (farming
materials, metals, oil) whose prices are determined in dollars.
When the dollar is expensive, the raw materials appreciate too.
At the same time, the price of petrol has tumbled, but exactly
because the dollar is up, the Bulgarians cannot "enjoy" low
prices of inputs.

Dimov spoke about possible appreciation of imported goods
purchased in dollars, such as household appliances, footwear,
etc., but noted that it will be a matter of policy by merchants
how they will proceed.

Commenting savings in different currencies, the analyst said
that any prediction may or not come true. However, in his view,
people holding dollars should not sell them. He said that if
people do not want to run risks, they should keep their savings
in Bulgarian leva or in euro. If not, they may buy dollars,
knowing that they can either win or lose, if the upward trend of
 the dollar does not hold for a really long period.