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Manat exchange rate against dollar to remain unchanged - Standard & Poor's

Finance Materials 23 January 2021 20:23
Manat exchange rate against dollar to remain unchanged - Standard & Poor's

BAKU, Azerbaijan, Jan.23

By Zeyni Jafarov - Trend:

Azerbaijan will keep actual peg of manat to US dollar at 1.7 AZN/USD, Trend reports referring to the reported data of Standard & Poor's (S&P) Global Ratings.

According to the data, in connection with the increased devaluation pressure in 2020, the planned and extraordinary currency auctions of the Central Bank of Azerbaijan with the participation of the State Oil Fund ensured a sufficient supply of foreign currency.

S&P predicted that if hydrocarbon prices remain low for an extended period of time, the authorities may allow an exchange rate adjustment to avoid the same significant loss of foreign exchange reserves as in 2015.

The fixed peg of the manat to the US dollar at 1.7 AZN/USD has remained unchanged for four years. The head of the Central Bank of Azerbaijan previously stressed that opinions on devaluation are empty talk. The submitted budget for 2021 is built precisely on the stable exchange rate of the manat and very low inflation.

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