“We assume Azerbaijan will retain the manat’s de facto peg to the U.S. dollar at AZN1.7 to $1, supported by the authorities’ regular interventions in the foreign currency market,” Analysts at the international rating agency SandP Global Ratings (SandP) say, APA reports.

“Nevertheless, in our view, should hydrocarbon prices drop sharply and remain low for a prolonged period, the authorities could consider allowing the exchange rate to adjust. This would help avoid a substantial loss of foreign currency buffers similar to that experienced by the central bank in 2015,” SandP Analysts say.

Source: Azeri-Press News Agency