"There is still strong political prioritisation to maintain the Azerbaijani Manat de facto exchange rate peg to the US dollar, despite the authorities' stated aim of allowing greater flexibility in the medium term," the international credit ratings agency Fitch Ratings noted, Paralel.Az-economics reports.

As Weak Policy Framework, Fitch noted that the Central Bank of the Republic of Azerbaijan (CBRA) uses the exchange rate as the intermediate operational target and has introduced instruments to improve transmission into the money market and banking rates.

"Monetary policy is constrained by underdeveloped capital markets, excess liquidity, low financial intermediation and still relatively high financial dollarisation," the agency added.