What fate awaits the manat? - Forecast for 2027 published

"One of the key factors affecting the stability of the manat exchange rate in 2027 will be the price of oil on the world market. If rising oil prices increase the volume of foreign currency flowing into the country, then falling prices may lead to a reduction in foreign currency inflows."

This was stated by member of the Milli Majlis Committee on Economic Policy, Industry and Entrepreneurship Vugar Bayramov in a comment to BAKU.WS.

According to him, high oil prices on the world market and, consequently, an increase in the inflow of foreign currency into the country played an important role in the absence of serious pressure on the manat exchange rate in 2026.

"The growth in the volume of foreign currency flowing into the country made the Central Bank's interventions in the foreign exchange market and sterilization measures necessary. The purchase of foreign currency by the regulator also contributed to an increase in its assets.

Next year, one of the main factors affecting the manat exchange rate will be the state of the balance of payments. The volume of foreign currency flowing into the country, especially oil revenues, is of great importance for maintaining balance in the foreign exchange market," the deputy noted.

V. Bayramov added that Azerbaijan effectively applies a managed exchange rate regime. For this reason, the position of the Central Bank, its interventions in the foreign exchange market, and the decisions it makes play a determining role in shaping the manat exchange rate.

"The stability of the manat exchange rate in 2027 will depend not only on world oil prices and the volume of foreign currency flowing into the country, but also on the policy that the Central Bank will pursue," he concluded.

Orkhan Huseyn