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S&P: Increased flexibility of manat exchange rate has helped husband foreign exchange reserves

27 January 2018 11:05 (UTC +04:00)

We believe that the increased flexibility of the manat exchange rate has helped lessen external pressures and husband foreign exchange reserves, the international rating agency Standard and Poor's (S&P) noted in the information on Azerbaijan’s sovereign credit rating, APA-Economics reported.

“At the same time, apart from setting the country's foreign exchange regime and making interventions, the CBA's ability to influence economic developments remains considerably constrained. We estimate that resident deposit dollarization remains at over 60%, which in our view severely limits the CBA's attempts to influence domestic monetary conditions. In addition, Azerbaijan's local currency debt capital market remains small and underdeveloped, while CBA's operational independence remains limited,” said the information.