Fitch: Azerbaijani manat rate to be stable during 2016
Baku, Azerbaijan, April 13
By Azad Hasanli, Anvar Mammadov - Trend:
The rate of Azerbaijani national currency, manat, will remain stable in the short term - during 6-12 months, says Dmitry Vasilyev, director for financial institutions at Fitch, a global ratings agency.
Vasilyev said that much will depend on the duration of low oil prices, the government's response to this situation [actions to be taken in response to the low oil price] and the amount of the current account balance.
"The export has dropped," Vasilyev told reporters in Baku April 13. "If the import drops, the current account balance will not be formed and perhaps, the pressure on the exchange rate can be avoided."
Vasilyev said that if the oil prices remain low for a long time and the export falls, then, accordingly, the pressure will be put on the current account balance.
"In this case, it will depend on the government and how much it is ready to spend to maintain the exchange rate of manat versus the US dollar," Vasilyev said.
As a result of change of the manat rate in 2015, the dollar rate increased by more than 97 percent.