Azerbaijan moved its currency to a free-float regime on Monday, under pressure from the plummeting price of oil and similar decisions taken by some of its trading partners earlier in the year.

The falling price of crude on global markets, for a third year, forced the central bank´s hand, due to the need to defend its international reserved, which had fallen to critically low leves.

Taxes from oil and gas represented approximately three-quarters of the country´s revenues.

"The central bank has decided to switch to a floating manat rate from Dec. 21," the monetary authority in Baku said in a statement.

"The manat rate will be determined by supply and demand on the forex market."

According to the offical fixing from the central bank, the country´s currency, the manat, plunged 47.6% on Monday to stand at 1.55 versus the US dollar.

The central Asian country had already devalued the manat by 33.5% against the greenback in February and by 30% versus the euro.

Kazhakstan devalued its own currency, the Tenge, in August.