Fitch sees no signs of Azerbaijan moving to floating currency regime

International credit rating agency Fitch Ratings has found no indications that Azerbaijani authorities are preparing to move to a floating exchange rate system.

Arvind Ramakrishnan, Fitch’s EMEA Sovereign Ratings Director, noted the country maintains a stable commitment to pegging its national currency to the US dollar, and this policy is expected to continue, Caliber.Az reports via local media.

Fitch kept its real GDP growth forecast unchanged at 2.4% for 2026 and 2027, aligning with the country’s medium-term growth potential.

The average annual inflation rate will reach 4.6% in 2026 and subsequently decline to 4% in 2027, according to Fitch’s projections.

Ramakrishnan added that fiscal policy is expected to remain moderately stimulative, driven by spending on liberated territories and other capital projects, with potential underutilization of defence budgets due to “peace dividends” from normalised relations with Armenia. The planned investment structure is unlikely to create significant domestic inflationary pressure.

By Jeyhun Aghazada