Change in Nominal Exchange Rate in December Results in Price Rise in Azerbaijan

Business Materials 2 February 2008 13:59 (UTC +04:00)

Azerbaijan, Baku, 2 February / corr. Trend I. Khalilova/ The National Bank of Azerbaijan (NBA) confirms the reduction in the nominal effective exchange rate of manat in December 2007 against the similar period of 2006 compared to currencies of the trade partners of Azerbaijan, NBA said. The exchange rate went down by 5.1% in the total trade turnover, 4% in the import and 5.8% in the export.

According to NBA estimations, there was a reduction by 4.3% in the nominal effective exchange rate on the oil sector in December compared to the end of 2006 and 4.4% in the import and export.

The change in the effective nominal exchange rate in 2007 influenced to the real effective exchange rate in the total trade turnover by 52% and to the price rise of 48% (including the oil sector). It means that the change in the nominal exchange rate caused reduction in the real effective exchange rate and increase in the prices.

The nominal effective rate of manat on the foreign trade (including the oil sector) went down by 14.6%, 7.9% in import and 19.2% in the export in December of 2007 compared to the similar month of 2006.