Real Effective Rate of AZN in 2007 Increased in relevant to All Currencies, excluding Turkey and Kazakhstan

Business Materials 2 February 2008 11:49 (UTC +04:00)

Azerbaijan, Baku, 2 February /corr. Trend I.Khalilova / According to the data by the National Bank of Azerbaijan (NBA), considering the oil sector, in December the real effective rate (RER) of AZN in relevant to the currencies of the foreign partners of the country rose by 6.8% in the general trade turnover, including export and import operations, a source at the NBA stated.

In addition, the held researches showed that the impact of the US share on increase of the RER in the external trade (considering oil sector) in 2007 was 0.7%, European zone - 4%, Anglia - 1.2%, Russia - 0.4%, Georgia - 0.1%, Iran - 0.1%, Israel - 0.4%, Ukraine - 0.2%, Japan - 0.4%, Kazakhstan - 0.1%, Turkey - 0.5%.

Compared to the last year, in December 2007 the RER in the non-oil sector increased by 5.4% in the general trade turnover, 5.9% - import and 2.7% - export.

The RER in the non-oil sector in December 2007 decreased by 10.9% in the general trade turnover, 8.6% in the import and 22.2% in the export.

In 2007 the rates of RER increase in relevant to the currencies of the USA, Anglia and Ukraine exceeded rates of increase of nominal rate of AZN. In addition, the AZN nominally dropped in relevant to the currencies of the European zone, Turkey, Russia, Georgia, Kazakhstan, Israel and Japan, but real rate increased in relevant to all currencies, excluding Turkish lira and Kazakh tenge.

The NBA made a conclusion that the RER of AZN decreased and it supported favorable conditions for the foreign trade with key trade partners of Azerbaijan. In 2001 to 2007 the inflation in Azerbaijan made up 68.2%, while the prices in the trade partner countries averagely increased by 83.5%.