BAKU, Azerbaijan, June 10. Analysts at S&P Global Ratings agency assumed Azerbaijan's retaining the manat's de facto peg to the US dollar at AZN1.7 to $1 until 2026, Trend reports.
"Nevertheless, in our view, should hydrocarbon prices drop sharply and remain low for a prolonged period, the authorities could consider adjusting the exchange rate. This would help avoid a substantial loss of foreign-currency buffers, similar to the central bank's actions in 2015," the agency said.
The Asian Development Bank also expects the national currency to remain peg to the dollar until at least 2026. According to the bank's report, this will be due to a significant easing of pressure on manat.