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Fitch: Manat rate to remain stable during next two years

03 February 2018 07:20 (UTC +04:00)

Macro-stability improved in 2017 after two years of turbulence, Fitch Ratings reported.

'In the context of gradually recovering oil prices and tight monetary and fiscal policies, the exchange rate has been stable since April 2017 at around 1.70 to the US dollar. This has in turn helped ease pressure on inflation, which although at 12.9% on average in 2017, has reduced on a month-on-month basis since April 2017. Dollarisation of loans and deposits (40.6% and 72.1%, respectively, at end-November 2017) is slowly declining, also reflecting some improved confidence in the currency. Fitch expects the currency to remain broadly unchanged over the coming two years, based on stable oil price assumptions', the agency said.