"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 S&P Global Ratings (S&P) 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," S&P Analysts say.