Pyotr Khveychak, whose forecasts in the last four quarters were the most accurate, believes that the sanctions imposed against Russia restrict access for Russian companies in international capital markets. Therefore, they have to buy foreign currency on the domestic market to repay external debts.

The ruble`s continued downward spiral is a cause for concern among post-Soviet countries, whose economies are deeply integrated with Russia`s.

Economist Ogtay Hagverdiyev, however, told local media that fluctuations in the Russian ruble will not affect the course of Azerbaijan`s national currency, the manat. He believes that the manat and ruble may devalue if oil prices fall to $30-40.

"Today the exchange rates of the national currencies of Russia and Azerbaijan depend on oil prices, but not on each other. The devaluation of the ruble can not affect the manat," the expert said.

According to him, today the real exchange rate of ruble is $1 to 55-65 Russian rubles. The Central Bank of Azerbaijan continues to prop the manat with its large reserve base.

Nariman Agayev, the Chairman for Research on Sustainable Development Center, told local media that, given the opinions of the experts, the exchange rate of ruble will grow in the next two weeks.

"Devaluation is not expected in Russia. Accordingly, the Azerbaijani manat will not be affected as well. Azerbaijani manat will be kept stable in the coming six months," he said. "Today, according to the results of the first half of 2015, the budget deficit is miserable, thus, there is no grave danger for our national currency."

According to the Central Bank of Azerbaijan, the exchange rate of the manat against the US dollar was set at 1.0488 AZN/USD on July 9. Over the past few days, the rate increased by 0.0002 manats or 0.019 percent.

Azerbaijan is the third-largest oil producer in the former Soviet Union after Russia and Kazakhstan. Oil and gas make up 95 percent of Azerbaijanв`s exports, over 65 percent of its state revenues, and 40 percent of its GDP.

Azerbaijan`s manat had been stable at just over 0.78 per dollar since mid-2011 until the recent slump in global oil prices, which put downward pressure on the manat. Although Azerbaijan`s economy is less affected than other CIS states by the economic crisis in neighboring Russia, its economy depends on the oil and gas sector. Thus, Azerbaijan, the biggest economy in the South Caucasus, was forced to devaluate its national currency.

The CBA set the manat at 1.05 against the USD in February 2015, compared to 0.78 earlier. The move aims to strengthen ``international competitiveness,`` amid pressure on the countries finances from falling oil prices.

The CBA has spent about $1 billion of its reserves since the beginning of 2015 to defend the manat. The intervention has eaten into its foreign-currency reserves. The CBAв`s foreign reserves fell 11 percent to about $12.7 billion as of January 31 from a year earlier, partly as it sought to protect the manatв`s peg to the dollar.

More about: